Thousands of foreign professionals could face uncertainty over their long-term employment plans in the United States after the Trump administration halted employment-based green card processing linked to eight major technology firms amid allegations of immigration programme abuse.
Microsoft, Adobe, Cognizant, Infosys, Tata Consultancy Services, Wipro, HCL Technologies and Capgemini are among the companies affected by the action announced on Thursday, October 8, 2026. US officials say the restrictions will remain in place while federal authorities investigate the companies’ use of the permanent residency sponsorship system.
The decision has put the spotlight on the role of international recruitment in the American technology industry, particularly the employment of Indian professionals by US businesses and global IT outsourcing firms.
Washington Freezes Applications During Federal Probe
US Labour Secretary Keith Sonderling announced that the government would stop accepting new permanent labour certification applications involving the named companies and suspend the processing of applications already awaiting decisions.
The affected pathway, known as the Permanent Labour Certification Programme (PERM), is a key step in many employer-sponsored green card applications. It generally requires employers to demonstrate that qualified American workers are not available for the position under the applicable conditions and that employing a foreign candidate will not adversely affect local workers’ wages and working conditions.
Sonderling said the decision followed ongoing federal investigations into the firms.
“I am hereby suspending from the Permanent Labor Certification Program some of the largest IT outsourcing firms in the world, Cognizant, Infosys, Tata, Wipro, HCL, and Capgemini,” he said.
The restrictions could delay permanent residency plans for eligible foreign employees whose employers rely on the programme. However, the announcement does not mean that all foreign workers at the companies have lost their immigration status or that existing green card holders are affected.
Vance Challenges Microsoft Over Its Hiring Practices
Microsoft has drawn particular attention from the administration, with Vice President JD Vance accusing the company of making extensive use of the system while American workers face layoffs.
Vance argued that employers could use recruitment advertisements to demonstrate an apparent shortage of qualified local applicants before pursuing permanent residency sponsorship for foreign workers.
“There has been no company in the United States, unfortunately, that has used this system more than Microsoft,” Vance said, according to reports of the news conference.
He also delivered a direct message to the technology company, saying it needed to prioritise American talent.
The administration’s allegations remain under investigation, and the announcement does not establish that the affected companies have committed fraud.
The timing also drew attention because the announcement came hours before President Donald Trump was scheduled to present Microsoft chief executive Satya Nadella with the National Medal of Technology and Innovation.
Microsoft Cites Its Employment Figures in Response
Microsoft has rejected the suggestion that its visa sponsorship practices are intended to replace American employees with foreign workers.
The company said the majority of its US workforce consists of Americans and that most of its H-1B filings in the previous fiscal year related to employees already working for the business.
According to Microsoft's statement, approximately 80 per cent of around 6,000 H-1B applications it submitted during that period were requests to extend existing employees' visas or change their immigration status, rather than applications for new hires.
The company said the remaining filings for new employees accounted for approximately 1 per cent of its US workforce. It added that these individuals were already legally present in the country before joining the company.
Microsoft also maintained that it follows the requirements of the H-1B programme and pays foreign workers compensation comparable to that of employees performing similar work.
The company said it was willing to provide the administration with further information about its employment and immigration practices.
Its position contrasts with the administration’s concerns about whether employer-sponsored immigration programmes are being used in ways that disadvantage American workers.
Why Indian IT Professionals Are Watching Closely
The restrictions have particular significance for India, whose technology companies and skilled professionals have a substantial presence in the American market.
Infosys, Tata Consultancy Services, Wipro and HCL Technologies are major Indian IT service providers, while Cognizant and Capgemini also employ international technology professionals across their global operations.
The H-1B visa programme, which is separate from PERM, allows US employers to hire eligible foreign professionals for specialised occupations. It is widely used in technology-related fields, including software development, engineering and information systems.
Indian nationals account for nearly three-quarters of approved H-1B visas, according to figures cited by The Associated Press.
Although the latest action concerns permanent labour certification rather than automatically cancelling H-1B visas, it could complicate the longer-term immigration plans of some workers seeking permanent residence through their employers.
Potential consequences include delays in green card applications, uncertainty about future sponsorship and additional administrative challenges for businesses employing international talent.
The precise impact on individual workers will depend on their existing immigration status, the stage of their applications and how the government implements the suspension.
Scale of Foreign Recruitment Comes Into Focus
Data cited in reporting by Reuters indicate that the companies covered by the action have collectively sought nearly three million foreign workers since 2009. The figures also include more than 230,000 H-1B approvals and over 100,000 permanent labour certifications.
These numbers illustrate the scale of the companies’ involvement in US employment-based immigration, although they do not establish that the applications were improper.
Microsoft, meanwhile, reported employing approximately 125,000 workers in the United States and 103,000 internationally in its 2025 annual report.
The administration has argued that the existing system can be exploited when employers advertise positions in ways that fail to attract American applicants before turning to foreign recruitment.
The companies named in the latest action have not been found guilty of the alleged abuses on the basis of the announcement alone.
Immigration Restrictions Extend Beyond Technology Firms
The green card suspension forms part of a wider set of measures by the Trump administration targeting employment and immigration programmes.
The administration has also introduced a $100,000 fee for certain new H-1B petitions involving workers hired from abroad, adding to concerns among employers about the cost of recruiting international professionals.
In addition, officials have launched investigations into nine universities, including Harvard, Yale, Stanford, Brown and the Massachusetts Institute of Technology, over alleged misuse of programmes for international students and exchange visitors.
Vance said the administration wanted to determine whether such programmes were being used in ways that could undermine wages and employment opportunities for Americans.
The allegations involving the universities are separate from the investigations into technology companies, and the claims have not been established as findings of wrongdoing.
What the Ban Means for African Professionals
The suspension could create uncertainty for African technology professionals seeking permanent residency in the US through the affected companies, particularly workers from Nigeria, Ghana, Kenya, and South Africa employed in the technology sector.
For African workers whose green card applications are affected, the freeze could delay plans to settle permanently, reunite with family members, or advance their careers in the United States. However, the suspension does not automatically cancel existing work visas or revoke the legal status of all affected employees.
The decision could also make some US employment opportunities less attractive to African professionals if companies become more cautious about sponsoring foreign workers.
As investigations continue, the outcome could affect how multinational technology firms recruit talent from Africa and other regions, potentially increasing pressure on African countries to create more opportunities for skilled professionals at home.
Sources: Reuters | The Associated Press via NBC News