U.S. Department of Labor Suspends Microsoft, Adobe, and Major Outsourcing Firms from PERM Program

The U.S. Department of Labor announced Thursday that it is suspending several prominent companies — including Microsoft, Adobe, Cognizant, Infosys, Capgemini, Tata, Wipro, and HCL — from the Permanent Labor Certification (PERM) program. Labor Secretary Keith Sonderling made the announcement, marking the latest escalation in the Trump administration’s push to restrict foreign hiring programs.

What the PERM Suspension Means for Tech Companies

Under the suspension, the Labor Department will not accept or process any new PERM applications for the named firms. Sonderling said Adobe and Microsoft were targeted “due to multiple active federal investigations.” The PERM program is the route through which U.S. employers sponsor foreign workers for green cards, so the freeze effectively blocks these companies from obtaining permanent labor certifications for overseas employees.

“Since 2009, just these companies alone have requested almost 3 million foreign workers. They’ve received over 230,000 H-1B visas approvals and over 100,000 permanent labor certifications. That’s hundreds of thousands of jobs that were taken from American workers.” — Keith Sonderling, U.S. Labor Secretary

Indian IT Outsourcing Firms in the Crosshairs

The action extends well beyond U.S. tech giants. Indian IT services companies — Cognizant, Infosys, Capgemini, Tata Consultancy Services, Wipro, and HCL — have long been major users of H-1B and PERM pipelines. The administration’s scrutiny of these firms reflects a broader effort to reshape how U.S. companies source technical talent from abroad, a priority that has energized parts of the technology and manufacturing workforce who argue foreign hiring suppresses wages and displaces American workers.

Political Context: Immigration Policy and the Elections

Vice President JD Vance singled out Microsoft, pointing to the company’s roughly 6,000 layoffs in 2025 and alleging that H-1B visa holders replaced displaced American workers. “We’re going to continue to support Microsoft and have a great relationship with Microsoft, but we’re also going to deny them the ability to apply for these permanent residencies until they show that they are going to get serious about putting American workers first,” Vance said.

The timing of the announcement aligns with the administration’s broader immigration enforcement push heading into the November elections. Labor and immigration policy have become central to the political narrative, with both parties competing to portray themselves as stronger defenders of American jobs.

Nadella, the National Medal, and a Notable Contrast

In a striking juxtaposition, President Trump is scheduled to award the National Medal of Science to Microsoft CEO Satya Nadella and other technology leaders at the same summit where the suspension was announced. Nadella, who was born in India and moved to the United States in 1988 before joining Microsoft in 1992, has become one of the most prominent immigrant success stories in American corporate life — making the PERM freeze a subject of particular irony.

What Comes Next

CNBC reported that Microsoft and Adobe had not yet responded to requests for comment at the time of publication. The suspensions are likely to face legal scrutiny, as PERM challenges typically raise questions about due process and the scope of departmental authority. For the affected companies, the immediate impact is the inability to file new green-card sponsorships, though existing petitions already in the pipeline may continue processing depending on final agency guidance.

Note: The source text references “November’s midterm elections.” As of 2025, the next congressional midterm elections are scheduled for November 2026. Readers should verify the intended timeline from official sources.

Business, News, Government, Immigration, H-1B Visa, PERM Program, Microsoft, Adobe, Infosys, TCS, Wipro, HCL, Cognizant, Capgemini, Indian IT Companies, U.S. Labor Department, Keith Sonderling, JD Vance, Satya Nadella, Tech Jobs, Foreign Worker Policy, Immigration Enforcement, 2025