Microsoft Says 80% of H-1B Visa Filings Covered Existing Employees After US Green Card Programme Suspension

Microsoft has defended its foreign-worker hiring practices after the United States government suspended the technology giant and seven other companies from a programme used to sponsor employment-based green cards. The company said that 80% of approximately 6,000 H-1B visa applications it filed during the last fiscal year were intended to extend or change the immigration status of existing employees rather than recruit new workers.

The statement, released on October 8, comes amid a broader US government crackdown on employment-based immigration and allegations that some companies have relied on foreign workers at the expense of American employees.

Microsoft Explains Its H-1B Visa Applications

Microsoft said the majority of its US workforce consists of Americans and maintained that its immigration practices comply with the requirements of the H-1B visa programme.

Of the roughly 6,000 H-1B applications submitted during the previous fiscal year, around 4,800 involved existing employees seeking extensions or changes to their immigration status. The remaining applications concerned people who were already legally present in the United States and chose to join the company.

Microsoft said these new employees represented approximately 1% of its US workforce. It also stated that it pays H-1B workers the same as other employees performing comparable work and that its compensation levels are among the highest associated with H-1B filings.

The company said it was prepared to provide the US administration with additional information about its employment and visa practices.

US Government Suspends Eight Technology Companies

The Trump administration's decision affects Microsoft and seven other major technology companies: Adobe, Capgemini, Cognizant, HCL, Infosys, Tata Consultancy Services and Wipro.

Vice President JD Vance announced the action on October 8, arguing that companies should prioritise American workers. US officials have raised concerns about alleged misuse of employment-based immigration programmes, particularly amid reports of layoffs at technology companies.

Labor Secretary Keith Sonderling said the government would stop accepting new permanent labour certification applications from the affected companies and would not process their pending applications under the programme.

The suspension centres on the Permanent Labour Certification Programme, commonly known as PERM. This process generally requires employers sponsoring foreign workers for employment-based green cards to demonstrate that qualified American workers are not available for the relevant positions under the applicable requirements.

The action does not, by itself, amount to a general cancellation of H-1B visas held by employees of the affected companies. H-1B visas and PERM labour certification serve different purposes within the US immigration system.

What the Decision Means for Foreign Technology Workers

The suspension could complicate the path to permanent residency for eligible foreign employees whose employers depend on the PERM process. Workers seeking green cards through affected companies may face uncertainty while the restrictions remain in place.

For Indian technology professionals, the development is particularly significant because Indian IT services companies are among the affected employers, alongside major US technology businesses.

However, the immediate implications for individual workers will depend on their immigration status, the stage of their green card applications and any further government decisions. The suspension should not automatically be interpreted as a ban on all foreign recruitment or every category of work visa.

Immigration Policy Debate Intensifies

The dispute highlights the continuing debate over whether skilled-worker visa programmes support the US technology sector or create unfair competition for domestic employees.

Supporters of the H-1B system argue that technology companies need access to specialised international talent. Critics contend that employers must demonstrate that foreign recruitment does not undermine opportunities for American workers.

Microsoft's response places the distinction between new recruitment and applications involving existing staff at the centre of that debate. The company's figures suggest that most of its H-1B filings last year were related to employees already working for the business.

The next developments will depend on the administration's review, the companies' responses and any clarification about the scope and duration of the restrictions. For now, the decision has introduced fresh uncertainty into employment-based immigration for workers connected to some of the world's largest technology companies.