World
US Suspends Microsoft and Adobe from Visa Program Over Fraud Allegations
The United States government has suspended several major technology companies, including Adobe and Microsoft, from a program that provides a pathway to permanent residency for skilled foreign workers. The move follows allegations of fraud and is part of a broader effort to encourage companies to hire more Americans.
Vice President J.D. Vance told reporters that Microsoft had laid off 6,000 American workers while obtaining 6,300 H‑1B visas and nearly 3,000 green cards. He warned that the company could not replace American workers with foreign “indentured servants.” Vance also announced a crackdown on alleged J‑1 visa fraud involving nine universities, including MIT, Harvard, Yale, Stanford and Cal State, claiming that the schools were using international students to reduce U.S. wage costs.
Microsoft responded in a blog post, stating that 80 percent of the visas were to extend or change the status of existing employees and that the remaining filings for new employees were for individuals already legally in the United States, representing only 1 percent of its U.S. workforce. The company is the fifth largest user of H‑1B visas in the United States, according to U.S. Citizenship and Immigration Services data.
Adobe did not comment on the allegations. Secretary of Labor Keith Sonderling also said that other major information technology firms, including Infosys and Tata Consultancy Services, would be suspended from the program.
The Department of Labor has identified $22 billion worth of visa fraud and emphasized that protecting American workers is a priority.
Microsoft’s stock fell 1.5 percent after the announcement, while Adobe’s shares rose 2.1 percent in late‑day trading. The news came hours before President Trump was scheduled to award the National Medal of Technology and Innovation to Microsoft CEO Satya Nadella, one of six business leaders to receive the honor, five of whom were foreign‑born.
Frequently asked questions
Why were Microsoft and Adobe suspended from the Visa program?
They were suspended due to allegations of fraud in the H‑1B visa program, including claims that Microsoft laid off 6,000 American workers while obtaining 6,300 H‑1B visas and nearly 3,000 green cards.
What did Vice President J.D. Vance say about Microsoft's hiring practices?
Vance said Microsoft laid off 6,000 American workers while obtaining 6,300 H‑1B visas and nearly 3,000 green cards, and warned the company could not replace American workers with foreign indentured servants.
How did the announcement affect Microsoft and Adobe stock?
Microsoft's stock fell 1.5 percent, while Adobe's shares rose 2.1 percent in late‑day trading.