US Suspends Eight IT Giants, Including Microsoft and Tata

The Trump administration has suspended eight major technology companies, including Microsoft, Tata Consultancy Services (TCS), Infosys, Wipro, Cognizant, HCL, Capgemini and Adobe, from the US Permanent Labour Certification (PERM) programme, a key step in the employment-based green card process. US Vice President JD Vance and Labour Secretary Keith Sonderling announced the move, citing alleged misuse of employment-based immigration programmes and concerns about the impact on American jobs. The Department of Labour said it would stop accepting new PERM applications from the named companies and would not process their pending applications. The allegations are part of a broader effort by the administration to increase scrutiny of employers hiring foreign workers.

Vance criticised Microsoft, alleging that the company laid off thousands of American employees while continuing to use H-1B visas and sponsor green cards for foreign workers. Microsoft has defended its practices, saying most of its H-1B applications were for existing employees. Sonderling said the eight companies had collectively sought nearly three million foreign workers since 2009, receiving more than 230,000 H-1B visa approvals and over 100,000 permanent labour certifications. Under the PERM process, employers generally must demonstrate that qualified and available US workers cannot fill the relevant positions and that hiring foreign workers will not adversely affect wages or working conditions for similarly employed Americans. The suspensions could complicate the affected companies’ ability to sponsor eligible employees for employment-based green cards.