Trump Administration Suspends Microsoft, Adobe, and Indian IT Giants from Worker Visa Program

The Trump administration has accused Microsoft, Adobe and a half-dozen other companies of abusing a US worker visa programme. The companies have been suspended indefinitely from the longstanding immigration initiative that has served as a crucial talent pipeline for Silicon Valley and Wall Street.

The suspensions, announced on Thursday by US Vice President JD Vance and Labour Secretary Keith Sonderling, included information technology services giants Cognizant Technology Solutions, Infosys, Tata, Wipro, HCL Technologies and Capgemini.

Those companies, either based in India or with large operations there, are often called outsourcers for their role offering contract IT work to other businesses. At a briefing in Washington, Mr Sonderling said there were multiple federal investigations under way into the use of a system that allows US employers to sponsor foreign workers for permanent residency.

“We are cutting off the head of the snake — the companies that enabled this abuse for decades,” Mr Sonderling told reporters. Mr Vance singled out Microsoft, the world’s third most-valuable company, for what he characterised as exploitation of the programme. “There has been no company in the United States, unfortunately, that has abused this system more than Microsoft,” he said.

In a statement, Microsoft defended its use of visa programmes and said that it looked forward to providing the administration with additional information. Adobe and the Indian companies named didn’t immediately respond to requests for comment.

Shares of Microsoft fell more than 1.3 per cent in New York trading on Thursday, while Cognizant reversed earlier losses and was up more than 5 per cent. Shares in Indian IT services firms including Tata Consultancy Services and Infosys rose on Friday.

Mr Vance’s comments assailing Microsoft came hours before US President Donald Trump honoured the company’s chief executive, Satya Nadella, with a National Medal of Technology and Innovation at a summit in Washington intended to highlight US scientific leadership. Last week, Mr Nadella joined other tech industry leaders at a White House luncheon to discuss safeguards for artificial intelligence.

“Microsoft is a great American company, and we have a great relationship with them, they do a lot of important things,” Mr Vance said. “Our message to Microsoft is not that we want to harm your company. It’s that we want your company to thrive, but we want it to thrive by employing and empowering your fellow Americans.”

The latest move takes aim at the Permanent Labor Certification Programme, or Perm, which allows companies to sponsor a foreigner who has been working in the US under the H-1B and other visa holders to become a legal permanent resident, the first step to becoming a US citizen.

Silicon Valley’s reliance on foreign workers has long been a flashpoint in the debate over immigration. Since Mr Trump’s return to office last year, the administration has seized on those concerns and pressed tech giants to do more to train and hire US workers.