Microsoft defended its H-1B visa hiring after the Trump administration suspended its US Permanent Labour Certification programme. The company said, "We believe in the strength and talent of the American workforce." Microsoft noted that most H-1B applications involved existing staff, while rejecting claims that it underpaid its foreign professional employees.
Microsoft has defended its use of skilled foreign workers after the Trump administration moved to suspend the technology company from the US Permanent Labour Certification programme, placing its immigration practices under increased scrutiny.
The statement said, "We believe in the strength and talent of the American workforce. That is why the vast majority of Microsoft employees in the United States are Americans."
The company said most of its American workforce comprised US citizens and argued that its H-1B applications largely concerned existing employees rather than new recruits arriving from overseas. It also maintained that foreign professionals received compensation comparable to that of colleagues performing similar work.
The intervention came amid a broader push by President Donald Trump’s administration to tighten oversight of employment-based immigration, with major technology and IT services companies facing action linked to federal investigations.
Microsoft said it had submitted approximately 6,000 H-1B visa applications in the previous financial year, of which around 80 per cent involved extensions or changes of status for people already employed by the company.
According to Microsoft, applications relating to new employees generally involved individuals who were already legally present in the United States and had chosen to join the firm. The company said this group represented approximately one per cent of its US workforce.
Microsoft also rejected suggestions that its reliance on H-1B workers involved underpaying foreign employees. It said its compensation levels were among the highest in the technology sector and that H-1B employees received the same pay as other staff carrying out comparable work.
The company added that its long-term approach combined recruitment within the United States with investment in domestic talent development and hiring internationally where specialist skills were needed.
The developments also produced a striking contrast at the White House, where Trump recognised Microsoft CEO Satya Nadella for his contribution to the American technology industry while his administration pursued tougher measures affecting the sector’s international workforce.
US President honours CEO Satya Nadella
Trump presented Nadella with the National Medal of Technology and Innovation during the White House’s Science: A New Golden Age Summit, recognising his leadership of Microsoft and its evolution into a major cloud computing business.
The president credited Nadella, who became CEO in 2014, with helping reshape the company and expand the reach of its software and cloud infrastructure. Trump also highlighted Microsoft's work in developing the computing capabilities used to train and deploy advanced artificial intelligence systems.
Michael Kratsios, director of the White House Office of Science and Technology Policy, said the award recognised Nadella’s role in revitalising Microsoft for the cloud computing era and building large-scale infrastructure supporting the development and deployment of American artificial intelligence.
Why is US revoking Green Card programme?
The action against Microsoft concerns the Permanent Labour Certification programme, which is associated with certain employment-based routes to permanent residence, rather than a general cancellation of Green Cards already held by immigrants.
US Labour Secretary Keith Sonderling announced the suspension of Microsoft alongside measures involving Adobe, Cognizant, Infosys, Tata, Wipro, HCL and Capgemini. Officials cited multiple active federal investigations but did not establish, in the announcement described, that every company had committed wrongdoing.
The Labour Department said it would stop accepting new applications and processing pending permanent labour certification cases involving the affected companies. Such certifications generally require employers to demonstrate that hiring a foreign worker will not adversely affect US workers’ wages or working conditions and that qualified American workers are not available for the position.
US Attorney General Todd Blanche said the move was intended to warn employers against discrimination towards American workers. Sonderling, meanwhile, said the companies had collectively sought approximately three million foreign workers since 2009, receiving more than 230,000 H-1B approvals and over 100,000 permanent labour certifications.
The administration has also pursued other restrictions affecting international workers and students. The Department of Homeland Security announced on 7 October proposed measures involving fees of $70,000 for initial Optional Practical Training applications by F-1 students and $30,000 for OPT applications, according to the information released.
The department said the measures were intended to address fraud and abuse, limit the use of lower-cost foreign labour and protect American employees.
However, the suspension of labour certification processing should not be confused with the blanket revocation of the Green Card programme. The action described targets specified employers and their pending cases, while the wider immigration measures reflect the administration’s effort to impose tighter controls on foreign labour.