Vice President JD Vance announced that Microsoft is suspended from a visa program allowing foreign workers to gain permanent residency after an investigation found the company abused the system. The Trump administration alleges Microsoft and other tech firms committed visa fraud by exploiting the H-1B and PERM programs to hire foreign workers instead of Americans. Vance claimed Microsoft laid off 6,000 U.S. workers while benefiting from 6,300 H-1B visas and nearly 3,000 green cards, calling the recipients “indentured servants” paid far less than American counterparts.
He stated that for every American worker laid off, Microsoft replaced them with one and a half foreign workers. Other companies like Adobe and IT outsourcing firms also face suspensions, while Harvard and Yale are under investigation. Microsoft defended itself, saying the vast majority of its U.S. employees are citizens, most H-1B applications were for existing employees, and its pay is among the highest in tech.
The administration says the action targets systemic fraud in the immigration system that undermines American jobs and wages, though critics note a lack of evidence for some claims.
Source: New York Times Top Stories · Summarized by HeadlinesBriefing