Vance Slams Microsoft Over Foreign Worker Hires, Prompting Company Defense

Yahoo Finance ·

The Trump administration has barred Microsoft and several other companies from utilizing the Permanent Labor Certification Program, or PERM. Speaking at a White House press briefing, Vice President JD Vance criticized Microsoft, alleging the technology giant dismissed 6,000 American workers last year while subsequently seeking 6,300 H-1B visas and nearly 3,000 green cards. Vance accused corporations of exploiting immigration programs to displace domestic employees with lower-paid foreign personnel. In response, Microsoft published a blog post clarifying that 80 percent of its 6,000 H-1B filings last year were intended to extend or adjust the legal status of existing staff rather than recruit new individuals. The remaining 20 percent accounted for professionals already residing lawfully within the United States. Furthermore, Microsoft maintained that its foreign personnel receive competitive, top-tier compensation identical to peers performing comparable duties.

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The Trump administration suspended the Permanent Labor Certification (PERM) green card sponsor program for major IT companies including Microsoft and Adobe. Vice President JD Vance criticized these companies for laying off 6,000 Americans and replacing them with foreign workers. This measure is expected to directly impact the workforce management costs and employment structures of tech companies.

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With major tech companies like Microsoft facing the suspension of the PERM program, rising labor costs and administrative setbacks in securing top international talent have become inevitable. In the short term, this may act as an increase in corporate hiring costs and productivity risks, putting downward pressure on stock prices.

The key monitoring indicators are whether government regulations will expand to additional tech companies and subsequent measures regarding H-1B visas. If regulations are eased, cost burdens will be resolved and a rebound is possible, but if the hardline stance is maintained, concerns over worsening earnings are expected to persist.

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