The Trump administration announced the suspension of eight tech companies from the Labor Department's PERM program, which grants green cards for permanent residency. Vice President JD Vance specifically criticized Microsoft, suggesting that the company replaced 6,000 laid-off workers with individuals on H-1B visas.
While the suspension does not impact H-1B visas directly, it reveals the heavy reliance of major tech firms on foreign labor. According to data from the U.S. Citizenship and Immigration Services, Amazon and Meta were the largest sponsors of H-1B visas, with Amazon leading at 19,178 approvals in fiscal 2025, while Microsoft followed closely with 6,258 approvals.
Notably, Amazon and Meta were not included in the suspension. Vance's comments indicate a growing concern among some political factions that such visa programs may undermine American job opportunities. The investigation into J-1 visa fraud involving nine universities further emphasizes the scrutiny on visa programs.
The data suggests that while Microsoft did receive a significant number of H-1B approvals, a substantial portion were for existing employees, contrasting with Amazon's strategy of hiring new foreign workers.
This situation may impact investor sentiment towards companies heavily reliant on foreign labor, as regulatory pressures could influence hiring practices and operational strategies in the tech sector