Microsoft is pushing back against claims that its H-1B visa filings signal a big wave of overseas hiring. The company says about 80% of the 6,000 applications it filed last year were actually for current employees—just extending their visas or updating their status. In other words, Microsoft says it’s not hiring loads of new people from abroad. This all comes after the Trump administration suspended Microsoft from a key U.S. program used to sponsor foreign workers for green cards.
So, what kicked off this whole mess? On October 8, the U.S. Department of Labor announced it was suspending both Microsoft and Adobe from the Permanent Labor Certification (PERM) program, which is a crucial early step toward getting an employment-based green card. The administration also targeted some big IT services companies like Infosys, Tata Consultancy Services, Cognizant, Wipro, HCL Technologies, and Capgemini with new restrictions.
U.S. Vice President JD Vance joined the criticism, pointing out those 6,000 or so H-1B approvals for Microsoft, as well as nearly 3,000 green cards and some 6,000 layoffs. The administration framed these suspensions as part of a wider investigation into how companies use government immigration programs.
Microsoft responded by insisting that most of its applications were for people already working at the company. Only a small number were for new hires, and those folks were already legally in the U.S. anyway. In fact, new hires made up just 1% of Microsoft’s U.S. workforce. The company says it’s happy to give the administration more details to clear things up.
Why does this distinction matter? Because when people see a big number of H-1B applications, they often assume it means a rush of new hires from overseas. In reality, most of these filings are just paperwork for people already working at Microsoft.
As for the suspension, it’s not a blanket ban on all immigration pathways. The Labor Department’s move only blocks new and pending PERM applications for the affected companies. It doesn’t cancel any current H-1B visas or take away anyone’s right to work. Still, it could slow down the process for workers counting on a green card sponsorship, leaving them in limbo as they wait.
There’s no word yet on how long these restrictions will last.
This hits Indian tech workers especially hard. Many of them manage years in the U.S. on H-1B visas and count on their employers to help them get a green card. Now, with PERM on ice for several big companies, they face even longer waits for permanent residency—even if they’re fine to keep working for now.
For Microsoft, this fight is really about its reputation and its access to sponsoring green cards. The company wants to prove it isn’t abusing the immigration system while fighting to get back into the PERM program. For employees, the immediate problem isn’t job loss—it’s the uncertainty about what comes next.
Bigger picture, this is all part of America’s ongoing debate about how companies use the H-1B and green card systems, especially with elections on the horizon. Officials claim some firms use these programs to undermine American workers, and Microsoft is trying to defend itself from those accusations. The company’s “80%” figure doesn’t settle the big policy argument, but it does push back on the idea that Microsoft is massively recruiting new workers from abroad.
For now, everything hinges on the government’s review and whether Microsoft can convince them it’s playing by the rules. The only concrete thing so far: one major green card sponsorship pathway is closed to some big tech companies, but the doors aren’t totally shut—at least not yet.
