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US Green Card Freeze: Microsoft, Infosys and Big Tech Hit
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Tushar Shrivas
Published
October 10, 2026
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7 MIN READ
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The US has suspended eight tech firms from the PERM green card program. Here's what the decision means for foreign workers, Indian IT and Big Tech.
Microsoft green card suspension 2026, PERM program suspension, US immigration policy, Indian IT companies US, Infosys green card news, H-1B visa 2026, foreign tech workers
The US Green Card Crackdown Expands Beyond Microsoft
A major change in US immigration enforcement is putting corporate hiring practices under fresh scrutiny. On October 8, the Trump administration announced that Microsoft, Adobe and six major IT services companies would be suspended from the federal Permanent Labor Certification, or PERM, program. The affected firms include Cognizant, Infosys, Tata Consultancy Services (TCS), Wipro, HCL Technologies and Capgemini. The government says it will stop accepting new and processing pending PERM applications involving these companies, escalating its scrutiny of employer-sponsored permanent residency for skilled foreign workers. Reuters
Vice President JD Vance and Labor Secretary Keith Sonderling have accused companies of misusing foreign-worker programs and disadvantaging American employees. The allegations include claims that companies laid off US workers while continuing to employ or sponsor foreign professionals. The affected companies' individual circumstances differ, however, and the government's accusations should not be treated as proof of wrongdoing in every case. Microsoft has disputed the broader characterization of its hiring practices and said most of its US workforce consists of American workers.
The Washington Post
What Is PERM, and Why Does It Matter?
PERM is a Department of Labor certification process that employers generally need to complete before sponsoring eligible foreign workers for certain employment-based green cards. Companies must demonstrate that there are not enough qualified, willing and available US workers for the job and that hiring a foreign worker will not adversely affect the wages and working conditions of similarly employed American workers. PERM is an important step toward permanent residency, but it is not itself a visa or a green card. US Department of Labor
The distinction matters because the new action targets a specific route to permanent residency rather than automatically cancelling every existing immigration status held by an employee. The suspension does not, by itself, mean that all H-1B visas issued to workers at the named companies have been cancelled. The practical consequences depend on the employee's immigration category, the stage of their application and any other valid status or petition they hold. TechCrunch
Why Indian IT Companies Are Watching Closely
The decision has particular significance for Indian technology professionals because several of the affected companies are major providers of IT consulting, software development and technology services. TCS, Infosys, Wipro, HCL Technologies and Cognizant employ workers across international markets and rely on different combinations of local recruitment, overseas delivery centres and cross-border staffing. The PERM suspension could complicate permanent-residency plans for some employees, even if its immediate financial impact on the companies remains limited. The Indian Express
For employees, the biggest concern is uncertainty. A worker who has spent years in the United States on a temporary employment visa may be relying on employer sponsorship as part of a longer-term plan to obtain permanent residency. A pause in PERM processing can disrupt that timeline, depending on the worker's individual case. Employees should not assume that their entire immigration status has ended, nor should they make job or travel decisions based solely on headlines; they need advice specific to their circumstances.
Business Standard
Could the Freeze Change Corporate Hiring?
The policy could make multinational employers reassess how they recruit and retain specialised talent. Companies may place greater emphasis on hiring workers who already have unrestricted US work authorization, recruiting locally, expanding overseas delivery teams or moving certain roles to other locations. However, these are possible business responses, not confirmed changes adopted by every affected company. The eventual impact will depend on how long the suspensions last, whether they are challenged and how the government handles individual cases. The Guardian
For global payroll providers and HR technology companies, the development highlights the importance of accurate immigration-status tracking and workforce planning across countries. Employers may need to review sponsorship pipelines, communicate with affected staff and coordinate with immigration counsel. But there is not yet sufficient evidence to claim that the suspension has already triggered a major shift toward international payroll platforms or remote-first hiring across the industry. USAGov
What It Means for Workers and Investors
For foreign professionals, the immediate priority is to understand which part of the immigration process is affected. A PERM suspension is different from an H-1B revocation, a denied green-card petition or the cancellation of permanent-resident status. Workers at the named companies should confirm their case stage with their employer's immigration team or a qualified immigration attorney before deciding whether to change jobs, travel internationally or pursue another route.
Investors will be watching for evidence of financial consequences rather than assuming an immediate earnings shock. Potential areas to monitor include recruitment costs, employee retention, staffing flexibility and the ability of IT services firms to serve US clients using a mix of local and offshore teams. The suspension could add friction to talent management, but its effects on revenue, margins and future hiring remain uncertain. Company disclosures and subsequent government decisions will provide a clearer picture.
The Indian Express
The Bottom Line
What happens to pending PERM applications?
Will the policy hurt Indian IT companies financially?
The Bottom Line
The US corporate green-card suspension marks a significant escalation in scrutiny of employer-sponsored permanent residency for skilled foreign workers. Eight major technology and IT services companies are affected, including Microsoft, Adobe, Infosys and TCS. The immediate issue is the interruption of PERM processing—not a blanket cancellation of all work visas or green cards. For workers, employers and investors, the next developments to watch are the duration of the suspensions, any legal challenges and whether the government expands or changes its enforcement policy.
For World Money readers, the central financial question is whether tighter immigration rules will materially change how global technology companies hire, retain and distribute skilled talent. That outcome is not yet settled, but the decision has made immigration compliance and workforce strategy a more urgent issue for the technology sector.
Frequently Asked Questions
Which companies have been suspended from the PERM program?
The eight named firms are Microsoft, Adobe, Cognizant, Infosys, Tata Consultancy Services, Wipro, HCL Technologies and Capgemini.
Does the suspension cancel H-1B visas?
No. The announcement concerns the PERM labor-certification process. It does not automatically cancel every H-1B visa held by an employee of an affected company.
What happens to pending PERM applications?
The Department of Labor has said it will not process pending applications involving the named companies during the suspension. The implications for an individual worker depend on their case and immigration status.
Can affected employees change jobs?
Possibly, but changing jobs can have immigration consequences that depend on the worker's visa category, application stage and circumstances. Employees should obtain case-specific legal advice before making a move.
Will the policy hurt Indian IT companies financially?
The effect remains uncertain. The suspension may complicate workforce planning and employee retention, but its impact on costs, revenue and margins will depend on its duration and how companies respond.
Tushar Shrivas
B.Tech CS@ Shri Balaji Institute of Technology & Management
I write at Metaplugs — breaking down the latest in tech, economics, and business into simple, impactful stories for everyday readers. Passionate about software testing and global finance.
