US suspends PERM access for major tech firms

On Oct. 8, 2026, the U.S. administration suspended Microsoft (MSFT) from the Permanent Labor Certification (PERM) program, which employers use to sponsor green cards for H-1B workers. Vice President JD Vance announced the decision and accused Microsoft (MSFT) of fraud related to its use of the program. The move restricts Microsoft’s ability to use the employment-based green-card route for H-1B employees while investigations proceed.

At the same news conference, Vance cited workforce and immigration figures for Microsoft. He said the company laid off about 6,000 American workers in 2025 while benefiting from roughly 6,300 H-1B visas and nearly 3,000 green cards. Vance characterized this pattern as the replacement of U.S. staff with foreign workers through visa and green-card sponsorships.

Labor Secretary Keith Sonderling said the Department of Labor is suspending several large IT outsourcing firms from the PERM program. The companies named include Cognizant (CTSH), Infosys (INFY), Tata Consultancy Services, Wipro (WIT), HCL and Capgemini. These firms, along with Microsoft and Adobe (ADBE), are described as being subject to multiple active federal investigations tied to their use of employment-based immigration programs.

The suspensions form part of a broader enforcement push targeting large technology and outsourcing employers. By limiting access to PERM, officials are directly affecting how these companies can sponsor permanent residency for foreign workers who initially enter the U.S. on H-1B visas. The actions signal a shift in oversight priorities for employment-based immigration in the tech sector.

Labor Department officials said subpoenas have already been served as part of the enforcement initiative. The department’s Inspector General is set to investigate nine universities over alleged practices involving international students and U.S. wage levels. Institutions named include Harvard, Yale and Stanford.

Officials allege that some universities may have used international-student programs in ways that undercut American wages. While details of the specific allegations were not fully disclosed, the investigations expand the focus beyond corporations to higher education institutions connected to the skilled-immigration pipeline.

The suspensions from the PERM program and the launch of multiple investigations represent a significant tightening of federal scrutiny over how companies and universities use H-1B visas, green-card sponsorships and international-student pathways. For Microsoft, Adobe (ADBE) and the named outsourcing firms, the actions could affect how they plan and manage their U.S. workforces that rely on foreign talent.

By linking corporate layoff data, visa usage, and university programs, officials are framing these cases as part of a single enforcement agenda. The developments highlight an immediate policy shift that could reshape compliance expectations for employers and institutions engaged in employment-based immigration and international education.