2 hrs ago
US Suspends Major IT Firms as Vance Alleges H-1B Abuse
The US government announced that several large technology and outsourcing companies were suspended from a labor certification program.
The companies named included Cognizant, Infosys, Tata, Wipro, HCL and Capgemini.
Microsoft and Adobe were also suspended, with officials citing active federal investigations.
Vice President JD Vance said some companies misuse the H-1B visa program.
He said the program should be for jobs that are very hard to fill with American workers.
Vance accused companies of bringing in foreign workers while laying off Americans.
He pointed to Microsoft as an example.
He said Microsoft laid off 6,000 American workers in 2025 and had thousands of H-1B approvals and labor applications.
The article does not include responses from the companies.
A US labor official announced suspensions from the Permanent Labor Certification Program for Cognizant, Infosys, Tata, Wipro, HCL and Capgemini.
The official also said Microsoft and Adobe were suspended because of multiple active federal investigations.
Vice President JD Vance accused companies of using the H-1B program to bring in cheaper foreign workers and replace American employees.
Vance said Microsoft laid off 6,000 American workers in 2025 while receiving approval for more than 6,000 H-1B visas.
He also said Microsoft filed 3,682 PERM applications, nearly 1,000 for positions matching those held by laid-off workers.
- Who
- US Vice President JD Vance and a US labor official; the companies named were Cognizant, Infosys, Tata, Wipro, HCL, Capgemini, Microsoft and Adobe.
- What
- The labor official announced suspensions from the Permanent Labor Certification Program, while Vance accused companies of abusing the H-1B program.
- Where
- The United States.
- When
- October 8, 2026, according to the announcement cited in the article.
- Why
- Vance alleged that companies used the H-1B program to hire cheaper foreign workers and replace American employees; the announcement cited multiple active federal investigations for Microsoft and Adobe.
Key facts
- Program
- Permanent Labor Certification Program
- Suspended outsourcing firms named
- Cognizant, Infosys, Tata, Wipro, HCL and Capgemini
- Other suspended companies named
- Microsoft and Adobe
- Microsoft layoffs cited by Vance
- 6,000 American workers in 2025
- Microsoft H-1B approvals cited
- More than 6,000
- Microsoft PERM applications cited
- 3,682, with nearly 1,000 said to match positions held by laid-off workers
Quotes
Sonderling47
Account quoted in a statement announcing suspensions from the Permanent Labor Certification Program
“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 — and also, due to multiple active federal investigations, @USDOL is suspending Microsoft and Adobe from the program.”
businesstoday.in
“The H-1B visa program is meant to allow companies to bring in really the best of the best from outside the United States of America for positions that are completely impossible to fill with American workers.”
businesstoday.in
Sources
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