The news
The White House has barred Microsoft (MSFT) and seven other large employers from the Permanent Labor Certification program, known as PERM, which U.S. companies use to sponsor foreign workers for green cards. Keith Sonderling, who leads the Labor Department, announced the decision at a White House press conference on October 8, 2026, SiliconANGLE reported.
Besides Microsoft, the companies barred are Adobe (ADBE), Cognizant (CTSH), Capgemini, Infosys (INFY), Tata Consultancy Services, Wipro (WIT) and HCL Technologies, according to SiliconANGLE. The report did not specify the legal authority used, how long the bar will last or whether the companies can appeal.
Vice President JD Vance, speaking at the same press conference, accused Microsoft of fraud, SiliconANGLE reported. He said the company cut 6,000 American jobs while obtaining 6,200 H-1B visas and almost 3,000 green cards, and alleged that it placed required job advertisements in little-read small-town newspapers so that it could claim no qualified Americans applied. These are Vance's allegations; no charges against Microsoft were reported.
Microsoft rejected that picture. According to SiliconANGLE, the company said Americans make up an overwhelming share of its U.S. workforce, that four out of five of its H-1B applications involved existing employees, many of them already legally in the United States, and that foreign workers are paid the same as Americans.
The action widens a crackdown that began earlier. On September 8, Labor Department Inspector General Anthony D'Esposito said PERM filings by Cognizant and Cloudera had been suspended as part of a visa fraud investigation run with the White House Fraud Task Force, Outlook India reported. The administration launched that investigation in July, according to the same report.
The numbers
- Employers barred from PERM on October 8
- 8
- U.S. jobs Vance said Microsoft cut
- 6,000
- H-1B visas Vance said Microsoft obtained
- 6,200
- Green cards Vance cited for Microsoft
- Almost 3,000
Why CEOs should care
For CHROs and hiring managers at the affected companies, the immediate issue is employees already in the green card queue. PERM is usually the first step for employer-sponsored permanent residency, so workers on H-1B visas who were counting on it face uncertainty, and that can hurt retention. Companies should map which employees are mid-process and get immigration counsel on their options.
For CIOs and procurement leaders who buy services from Infosys, TCS, Wipro, HCL, Cognizant or Capgemini, the bar could affect how these vendors staff onshore projects over time. Ask your vendors how they plan to keep key people on your accounts and whether delivery models or rates may change.
Boards and general counsel at other large tech employers should treat this as a warning. The administration has now moved from suspending two companies in September to barring eight, including one of the largest U.S. tech firms. Review PERM recruitment practices, including where and how job ads are placed, and document that qualified U.S. applicants were genuinely considered.
The bigger picture
Highly skilled immigration has long been a pillar of U.S. tech hiring, and the PERM step is central to turning temporary H-1B workers into permanent residents. Holger Mueller of Constellation Research told SiliconANGLE he was skeptical of the move, noting that talent immigration is one way the U.S. keeps its technology lead. Barring a company the size of Microsoft signals a sharper stance toward large employers than earlier enforcement aimed at outsourcing firms.
What’s next
Watch for the Labor Department's published basis and duration for the bar, any legal challenge from the companies, whether more employers are added, and how Microsoft responds formally to Vance's fraud allegation.
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