Microsoft and Adobe barred from key skilled worker visa program

The Trump administration is shaking up the tech world by suspending some of the biggest players—including Microsoft and Adobe—from a program that helps skilled foreign workers get permanent residency in the U.S. The move comes after the government accused these companies of fraud related to labor certifications.

The hit list

It’s not just Microsoft and Adobe facing the heat. Other major IT firms hit by the suspension include Capgemini, Cognizant, HCL, Infosys, Tata, and Wipro. According to Secretary of Labor Keith Sonderling, the government is hitting the pause button on all new or pending permanent labor certification applications from these specific companies. U.S. Vice President JD Vance didn't mince words at a press conference on Thursday, stating, “Our message to Microsoft is: You’re a great American company, but you’ve got to hire great American workers.”

Microsoft hits back

Microsoft is lowkey defending its receipts. A company spokesperson told TechCrunch that the vast majority of its U.S. staff are already Americans. They clarified that about 80% of their roughly 6,000 H-1B visa applications last year were just to extend or change the status of people already working there. They emphasized that new filings for employees already legally in the country represent only 1% of their total U.S. workforce. “These were not to hire new people,” the statement clarified.

The plot thickens

The drama doesn't stop at corporate giants. The administration is also launching investigations into nine universities—including Ivy League staples like Harvard, Yale, and Stanford—over claims they are abusing international student programs to undermine wages for American workers. It’s giving major oversight energy, and for now, the tech industry is left waiting for more info from the feds.

Why it matters

H-1B visas are the backbone of how many tech companies bring in global talent. If these firms are locked out of the pipeline for permanent residency, it could drastically change how they staff their teams and how international tech workers plan their careers in the U.S. Long story short, the hiring game just got a lot more complicated.