Trump Suspends Microsoft, Adobe From Green-Card Program Over 6,000 U.S. Layoffs
Updated
Updated · CNN · Oct 8
Trump Suspends Microsoft, Adobe From Green-Card Program Over 6,000 U.S. Layoffs
3 articles · Updated · CNN · Oct 8
Summary
Microsoft and several other firms were barred indefinitely from the Labor Department’s PERM program, freezing new and pending green-card requests for foreign workers already hired through H-1B visas.
JD Vance said an administration probe found Microsoft laid off about 6,000 Americans last year while employing 6,300 non-citizens on H-1B visas, alleging the company used PERM to replace similarly qualified U.S. workers with lower-paid immigrants.
Adobe and multiple IT outsourcing firms were also suspended, and Vance gave no specific path for reinstatement beyond demanding that companies “change their behavior” and prioritize American hiring.
The move landed the same day Trump was set to award CEO Satya Nadella the National Medal of Technology and Innovation, underscoring the administration’s split message of praising Microsoft while punishing it.
The crackdown broadens a pre-midterm push on visa-related “fraud,” with officials also opening J-1 visa abuse investigations into nine universities including Harvard, Yale, Stanford and MIT.
With tech giants blocked from green card sponsorships, will the industry offshore operations or finally hire locally?
Could the unprecedented federal crackdown on foreign tech labor inadvertently trigger a massive talent exodus to rival nations?
October 2026 PERM Freeze: Trump Administration Halts Green Card Sponsorship for Major Tech and IT Firms
Overview
On October 8, 2026, the Trump administration suspended major tech and IT outsourcing companies—including Microsoft, Adobe, and several Indian firms—from the PERM program, freezing their ability to sponsor foreign workers for green cards. This action, triggered by allegations of systemic fraud and high-profile layoffs, immediately halted new and pending applications, severely disrupting the lives of thousands of Indian professionals and raising compliance costs for their employers. As companies pivot to local hiring and face talent retention risks, new rules like steep H-1B fees and higher wage requirements make offshore hiring unsustainable, driving skilled workers and jobs away from the U.S. and reshaping the global talent landscape.