The White House barred Microsoft and seven other tech firms from the PERM visa programme. Vice President JD Vance accused them of replacing US workers with foreign labour. He singled out Microsoft for filing 6,800 H-1B applications after laying off 6,000 staff. Microsoft said 80% of its H-1B filings were for existing workers paid the same as locals. Labor Secretary Keith Sonderling called such firms and universities 'visa mills'. The US will not process new or pending PERM applications from the eight companies. Microsoft employs over 200,000 people globally, most of them in the US. The H-1B programme is capped at 85,000 visas annually. The PERM programme is a pathway to permanent US residency for skilled workers. The US government proposed eliminating the 60-day grace period for laid-off visa holders last month.
What changed
US tech firms could hire skilled international workers via H-1B and PERM programmes without restriction.
What it unlocks
The US government halting new or pending PERM applications for Microsoft and seven other firms.
- 85,000 H-1B visas capped per year
- 130,000+ PERM applications certified last fiscal year
- $155,000 median H-1B salary at Microsoft
- 6,000 Microsoft layoffs
Sources