
AI-generated summary
The Permanent Labor Certification Program (PERM) is a legal pathway for foreign workers to apply for green cards in the US. The Trump administration has increased scrutiny of immigration programs, including H-1B visas, citing concerns about displacement of American workers.
The Trump administration on Thursday said it was suspending major tech firms, including Microsoft, from applying for a program that allowed their foreign workers to work permanently in the US.
US Labor Secretary Keith Sonderling accused those tech firms of abusing the program — the Permanent Labor Certification Program (PERM) — that had so far been a legal pathway for workers to apply for green cards.
"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," US Labor Secretary Keith Sonderling said.
Sonderling said the suspensions were due to ongoing federal investigations into those firms.
There are good reasons that Indian media firms covered the issue so urgently because many of those firms are either Indian or rely on thousands of Indian professionals who've moved to the country.
Trump administration accuses Microsoft of abusing program for green cards
Vice President JD Vance said the PERM system required companies to advertise work in the US before they applied for green cards for foreign workers due to a lack of qualified American job applicants.
"They'll put an advertisement in a small-town newspaper. They'll go out there and say that 'We have advertised for a position with our company, and nobody is responding to it.' And they will use that lack of response to then go and replace American workers with what is effectively foreign indentured servants," Vance claimed.
"There has been no company in the United States, unfortunately, that has used this system more than Microsoft," Vance said.
The announcement came hours before US President Donald Trump was scheduled to award the National Medal of Technology and Innovation to Microsoft CEO Satya Nadella.
Microsoft says majority of its workers are Americans
Microsoft said in a statement that it looked forward to providing the administration with additional information, saying the majority of its workers are Americans and that a large part of the H-1B filings have to do with the status of people already based in the US.
"We pay our employees some of the highest compensation in the tech sector, and our wages are among the highest of all H-1B filings," the company said.
The H-1B visa program is another part of the Trump administration's crackdown on immigration, as concerns have long persisted that the visa for skilled workers has displaced Americans in favor of lower-cost foreign labor.
Microsoft employs 125,000 US workers and 103,000 international workers, according to the company's 2025 annual report.
If you rely on our team for trusted reporting, please take a moment to select us as your Preferred Source on Google so you'll always see our verified news first.
Edited by: Sean Sinico
AI outlook — possibilities, not facts
The suspended tech firms will face increased scrutiny and potential legal challenges regarding their immigration practices
Likely · Within weeks
Microsoft will provide additional information to the administration to address the allegations
Very likely · Within days

South Korea is mandating a security overhaul after hackers breached seven major banks and other institutions, stealing data from 68,000 customers. Officials warn that AI-driven phishing and vulnerabilities in auxiliary systems pose a growing national threat.

Russia is systematically targeting Ukrainian data centers and digital infrastructure to disrupt information flows and services, though experts say a total internet blackout is unlikely due to sector decentralization.

Amazon Prime Day offers significant discounts on Apple devices including AirPods Pro 3 for $179 ($70 off), MacBook Air M5 for $1,099 ($200 off), and various accessories like the Backbone One controller and Smartish Side Hustle wallet, with deals ending soon as the event concludes.

Amazon Prime Day ends tonight at midnight with deep discounts on tested tech products including smartphones, laptops, headphones, cameras, tablets and home office gear. Featured deals include the Samsung Galaxy S26 Ultra for $980 ($420 off), Apple MacBook Air for $1,099 ($200 off), and Nothing Headphone (1) for $189 ($110 off). Updated on October 7 at 7:15 pm ET with additional deals and product verification.

WIRED's vacuum expert shares personally tested Prime Day deals on robot, stick, and car vacuums from brands like Shark, Dyson, Bissell, and Worx, emphasizing real-world performance and long-term value beyond the sale.

WIRED's pet tech reviewer highlights discounted automatic litter boxes, pet cameras, feeders, fountains, and DNA test kits available during Amazon Prime Big Deal Days, featuring tested products like the Petkit Purobot Max Pro 2 and Petcube Cam 360 with specific price savings.