Microsoft Responds To Trump H-1B Allegations

Microsoft has defended its H-1B hiring practices after the Trump administration suspended the company from the PERM green card programme, rejecting allegations that it replaced American workers with foreign employees.

The company said around 80% of the nearly 6,000 H-1B applications it filed in the last fiscal year were to extend or change the status of existing employees. These applications were not for new hires. The remaining applications were for employees who were already legally living in the US and chose to join Microsoft. They accounted for just 1% of the company’s US workforce.

Microsoft stressed that these employees were not new arrivals to America and said it follows the strict requirements of the H-1B visa programme.

The company also said it pays some of the highest salaries in the technology sector, with its wages among the highest in H-1B filings. It added that H-1B employees receive the same pay as other employees performing comparable work.

Microsoft said its success as a global technology leader depends on building the world’s best technology workforce. The company said it does this by strengthening America’s talent pipeline, hiring American workers and attracting the best talent from around the world.

The response comes after US Vice President JD Vance accused Microsoft of replacing American workers with foreign employees. Vance pointed to the company’s layoffs of around 6,000 workers last year, alongside approximately 6,300 H-1B visa approvals and nearly 3,000 green cards.

The US Department of Labor has suspended Microsoft, Adobe and six major IT companies, including Cognizant, Infosys, Tata Consultancy Services, Wipro, HCL and Capgemini, from the PERM programme.

The suspension means the companies cannot submit new PERM applications or have pending applications processed. PERM is a key step in the employment-based green card process. However, the action does not prevent these companies from applying for H-1B visas or automatically cancel the status of their existing H-1B employees.

Microsoft said it looks forward to providing the US administration with additional information. The move has raised concerns among Indian IT professionals who depend on employer-sponsored green cards to secure permanent residency in America.