US Suspends Microsoft and Adobe From Visa Programme Over Fraud Claims and Job Displacements

The United States government has suspended major tech companies, including Microsoft and Adobe, from a residency pathway programme for skilled foreign workers following allegations of fraud. The announcement was made by US Vice President JD Vance during a news conference on Thursday, alongside Labor Secretary Keith Sonderling, as part of a broader White House push to encourage domestic hiring.

Addressing the tech giant directly, JD Vance stated that Microsoft laid off 6,000 American workers while securing 6,300 H-1B visas and nearly 3,000 green cards. Highlighting concerns over worker dependency, JD Vance remarked that foreign employees are entirely subordinate to their employers and must leave the country if they lose their jobs. Data from Layoffs.fyi indicates that the broader tech sector has experienced more than 131,000 layoffs in 2026 alone.

Alongside Microsoft and Adobe, Secretary of Labor Keith Sonderling announced that several other information technology firms, including Indian tech giants Infosys and Tata Consultancy Services, are also suspended from the programme. The Department of Labor reported uncovering $22bn in visa fraud, with Keith Sonderling emphasizing the administration's commitment to safeguarding domestic labor.

Additionally, officials announced a crackdown on alleged J-1 visa fraud affecting nine universities, including MIT, Harvard, Yale, Stanford, and Cal State. The administration alleges these institutions utilized international students to undercut US wages, noting a claimed wage disparity of $20,000 between American researchers and those brought in under J-1 visas. Neither Microsoft nor Adobe responded to requests for comment from Al Jazeera, while Microsoft's stock fell 7.5 percent following the announcement.