
Administration cites federal investigations and prioritizes American workers ahead of midterm elections.
AI-generated summary
The administration is targeting foreign hiring programs ahead of midterm elections. Microsoft and Adobe face active federal investigations.
The U.S. Department of Labor announced it would suspend Microsoft and Adobe from its Permanent Labor Certification program on Thursday, Labor Secretary Keith Sonderling said, as the Trump administration continues to take aim at immigration and foreign hiring programs ahead of November's midterm elections.
Sonderling said the Labor Department won't accept or process any new applications under the program for a host of companies, including Cognizant, Infosys, Capgemini, Tata, Wipro and HCL.
The secretary said Adobe and Microsoft were also suspended "due to multiple active federal investigations."
"Since 2009, just these companies alone have requested almost 3 million foreign workers. They've received over 230,000 H-1B visas approvals and over 100,000 permanent labor certifications. That's hundreds of thousands of jobs that were taken from American workers," Sonderling said.
Vice President JD Vance criticized Microsoft specifically, pointing to the firm's 6,000 layoffs in 2025. Vance claimed that the company "replaced" those workers with people on H-1B visas.
"So we're going to continue to support Microsoft and have a great relationship with Microsoft, but we're also going to deny them the ability to apply for these permanent residencies until they show that they are going to get serious about putting American workers first," Vance said.
President Donald Trump is set to award the National Medal of Science to Microsoft CEO Satya Nadella and other leading technology CEOs on Thursday at the same summit where the suspension announcement was made.
Nadella is from India and moved to the U.S. in 1988. He joined Microsoft in 1992.
CNBC has reached out to Microsoft and Adobe for comment.
AI outlook — possibilities, not facts
Microsoft and Adobe will face increased scrutiny regarding hiring practices.
Very likely · Within months

Starbucks is exploring a takeover of Chipotle Mexican, according to a report in the Financial Times. CEO Brian Niccol ran Chipotle himself until two years ago. A merger would unite two major US brands in the casual dining scene. Chipotle is currently struggling with declining sales and health concerns following a Cyclospora outbreak. Chipotle's shares rose six percent following the news, while Starbucks' shares fell three percent.

European stock markets close in negative, with Milan (FTSE MIB -1.3%) and Frankfurt (-1.2%) leading the decline. Btp-Bund spread down to 111 basis points. Oil up 3% to 91 dollars a barrel, gas up 1.8% in Amsterdam. Among the stocks, weak STM, Tim and Unicredit; Eni and Tenaris do well thanks to crude oil.

The Argentine government of Javier Milei will collect 340 million dollars from the privatization of Aysa, the state drinking water distribution company of Buenos Aires, to a consortium made up of Phx Aqua (55%), Rowing (20%), Arcos Saneamiento (15%) and Transclor (10%). The contract provides for investments of 1.94 billion dollars by 2031 and 15 billion by 2056.

Frasers Group will close Harvey Nichols' Birmingham store in January, resulting in at least 60 job losses, while converting Leeds and Bristol outlets to the Flannels brand. The deal, which acquired the chain for £43m in August, preserved about 1,000 jobs and six UK stores, with the future of Manchester, Edinburgh and London locations uncertain.

The Caltagirone group and the Praude fund will oppose MPS CEO Luigi Lovaglio's plan on 29 October. With the no side exceeding 33%, the approval of the resolutions on Banco Bpm and Banca Generali appears impossible. Credit Agricole rejects the Ops on Bpm.

Chancellor Merz and President Macron are publicly considering excluding unfair trading partners from the European market, with China taking center stage due to its growing trade deficit. Despite increasing German exports to China, annual exports are shrinking while imports continue to increase. German companies continue to invest billions in China to remain competitive.