Microsoft denies JD Vance's claim it replaced thousands of US workers with foreign workers in 2025, saying 80% of H-1B applications were for existing employees

President Donald Trump's administration announced Thursday it was suspending Microsoft and several other firms …

Associated Press 2026-10-09

Context & Ripple Effects

Microsoft's dispute with JD Vance lands amid a renewed federal challenge to its employment-immigration practices: the administration has suspended Microsoft and several peers from a permanent-residency sponsorship program over alleged fraud. The company says the H-1B filings cited in the political argument were predominantly for employees already on its payroll.

The argument also revives a long-running fault line. Microsoft was part of the 2009 layoff-and-visa debate, and its 2021 DOJ settlement over immigration-related hiring discrimination showed that immigration procedures can create compliance exposure beyond workforce-size claims.

First-order effects

Microsoft's suspension from the sponsorship program directly constrains its ability to advance affected skilled foreign workers toward permanent residency while the government action stands.
Microsoft must defend its workforce and H-1B records against Vance's replacement claim, framing the filings as retention of existing employees rather than hiring that displaced U.S. workers.

Second-order effects

Adobe, Cognizant, Infosys and the other suspended employers face the same need to document immigration-sponsorship practices, turning a Microsoft-focused political accusation into a wider employer-compliance test.
Workers whose permanent-residency applications depend on employer sponsorship face greater uncertainty, increasing the operational value of clear immigration-process guidance from affected companies.

Third-order effects

The episode strengthens a pattern in which layoffs, visa filings and permanent-residency sponsorship are evaluated together in political and regulatory scrutiny, even though they are distinct employment processes.
If enforcement continues to pair fraud allegations with sponsorship suspensions, large employers' immigration controls and hiring records will become a more material governance issue alongside workforce planning.

The trend: U.S. employment-immigration policy is shifting toward more direct scrutiny of whether corporate visa and residency sponsorship aligns with domestic hiring claims.

Discussion

@dhh @dhh on x
“Vance focused on Microsoft, saying no American company had abused the program more. Microsoft laid off 6,000 American workers last year and received about 6,300 H-1B visas”, wow! https://insiderwire.com/...
@cloudwatch199 Sidharth on x
JD Vance's attack on Microsoft was deeply disingenuous, and Microsoft's response exposes the fundamental flaw in his argument. Vance compared layoffs with H-1B filings as though every visa petition represented an American worker being replaced. Here is what Microsoft actually sai…
@msftissues @msftissues on x
Microsoft comment on recent immigration questions https://blogs.microsoft.com/ ...
@senericschmitt Senator Eric Schmitt on x
The H-1B Scam is over.
@thejusticedept @thejusticedept on x
.@AGToddBlanche on fighting Visa fraud and protecting American workers:
@whfraudtf @whfraudtf on x
“We want you to continue to grow and to employ a lot of people, but we want you to employ American workers... You cannot lay off American workers and then replace them with foreign indentured servants.” - @VP JD Vance 🇺🇸
@bennyjohnson Benny Johnson on x
The Indian stock market completely COLLAPSED today after the Trump Administration suspended H-1B and foreign labor programs over fraud. The largest IT outsourcing firms in the world, Cognizant, Infosys, Tata, Wipro, HCL and Capgemini were removed from the Permanent Labor Certific…
@repelicrane Rep. Eli Crane on x
Our VP is spot on. Congress should pass my bill, the End H-1B Visa Abuse Act of 2026.
@david_j_bier David J. Bier on x
Good context but it's sad when a major company has to defend its legal, legitimate, and beneficial hiring practices by saying “they are not new arrivals to our country.” It would be better for the country, fiscally, economically, and socially if they were!
@repbrandongill Congressman Brandon Gill on x
We have no obligation to let corporations abuse our immigration system to undercut American wages and replace American workers with foreign labor. The H-1B program has gone so far off track that it's time to abolish it outright.
@shaig Shai Goldman on x
a win for American workers, should be celebrated by both parties
@repogles Rep. Andy Ogles on x
YES! The H-1B scam has ripped off American workers and destroyed our culture. @VP is doing what most never had the guts to do: call it out and end the fraud. My ASSIMILATION Act will support this move by gutting the H-1B program and repealing the Hart-Celler Act, which has threat…
@jamesfishback James Fishback on x
Want to *actually* stop Microsoft from replacing Americans with H-1Bs? Microsoft received $4.5 billion in federal government contracts in the last decade. Tell them they lose all government contracts if they have a single H-1B.
@vp Vice President JD Vance on x
Vice President JD Vance on the H-1B Visa application process fee:
@deedydas Deedy on x
The US DoL has suspended new and pending PERMs from prominent WITCH Indian IT companies (Wipro, Infosys, TCS, Cognizant, HCL, Capgemini) and Microsoft and Adobe. This means their H-1B employees will be subject to a 6yr cap with no extensions and not have a green card pathway.
@seanhannity Sean Hannity on x
Vance to Microsoft: you laid off 6,000 Americans and took 6,300 H-1Bs. Your green card pipeline is suspended.
@eric_schmitt Eric Schmitt on x
U.S. companies are discriminating against Americans to hire foreign labor. @VP highlighted one of their key tactics: hiding job openings from American candidates. I recently wrote to @USDOL to put an end to this rampant visa fraud. 🧵
@srajagopalan Shruti Rajagopalan on x
I hope the Indian government immediately takes steps to further ease the switch to more and larger Global Capability Centers for these firms in India. No worries, India and Indians will absorb all this work that American workers cannot perform.
@deedydas Deedy on x
This is justifiable for IT companies, although the list of offenders is far larger than the top 6 companies listed here. It's far more surprising that Microsoft and Adobe were affected. Wasn't clear why they were particularly singled out.
@bennyjohnson Benny Johnson on x
The Trump administration is cracking down on H-1B visa abuse, announcing the Department of Labor is suspending Microsoft, Adobe, and other major companies from receiving new approvals. Officials revealed: Cognizant, Infosys, Tata, and Wipro were also named. These companies have r…
@elwatto Miguel Carranza on x
My H-1B experience: - Worked at a startup, (willingly) earned less than I could have at bigger Silicon Valley companies... - ...but got paid the same as my American coworkers. Later started a company creating jobs in the US and globally. Paid millions in taxes over these 14 years…
@vp Vice President JD Vance on x
Vice President JD Vance announces the suspension of the PERM Program for Microsoft: “Thanks to an ongoing investigation, we have decided to suspend the PERM program for Microsoft, which means they will no longer be able to take those H-1Bs and apply for permanent resident status …
@whitehouse @whitehouse on x
Corporations are laying off American workers and replacing them with cheap H-1B Visa labor, undercutting the wages of American workers. This system has been going on for years. The @WHFraudTF is STOPPING this fraud, fighting for American workers instead of cheap foreign labor.
@modeledbehavior Adam Ozimek on x
This is another example. The fee was justified based on a paper that argued it would cause the program to only let in workers who were being underpaid. Now they are pulling away green card pathways The pattern: problems rationalizing policies that will amplify them
@josephjacks_ @josephjacks_ on x
America is an immigrant country. Jensen is an immigrant. Elon is an immigrant. Sergey (Google) is an immigrant. There are also immigrant founders of OpenAI and Anthropic. I appreciate this policy ... but the plain and simple fact remains : immigrants built tens of trillions in ma…
@russellbrandom Russell Brandom on x
Amazon and Apple sponsored more H-1b visas than Microsoft this year — but presumably their vibes are better? https://www.uscis.gov/...
@sonderling47 Secretary Keith Sonderling on x
For years, the H-1B visa program has been manipulated by fraudsters and it's been allowed to run rampant—THAT ENDS NOW! The difference is @POTUS, @VP, and the @WHFraudTF—we are FUNDAMENTALLY CHANGING the H-1B visa program to ensure we're prioritizing AMERICAN WORKERS FIRST instea…
@cojobrien Connor O'Brien on x
If one believes the terms of the H-1B visa amount to indentured servitude, pausing permanent residency applications for thousands of such visa holders (who would be able to work anywhere and for anyone with a green card) is, in practice, an expansion of indentured servitude.
@jamiescoop Jamie Satterfield on x
You do realize, dumbo, that Tennessee, particularly Oak Ridge and UT, rely heavily on the H-1B program. Tennesseans, this is what happens when we send @timburchett to Congress: he completely lost touch with constituent needs and is just part of the political boys club in DC
@danieldimartino Daniel Di Martino on x
Now these are the bad actors as you can see. Microsoft inclusion however is bafling.
@america1stlegal @america1stlegal on x
.@VP has revealed that Microsoft laid off 6,000 Americans in 2025 while being approved for thousands of H-1Bs. For years, Microsoft has also openly declared its use of non-merit factors, such as race and ethnicity, in its employment decisions. Microsoft bragged that its U.S.-base…
@nickadamsinusa Nick Adams on x
America doesn't need H-1B Visas. We have American workers.
@danieldimartino @danieldimartino on x
Daniel Di Martino
@vp Vice President JD Vance on x
Vice President JD Vance breaks down the data:
@wadhwa Vivek Wadhwa on x
America has enjoyed the greatest free lunch in history: highly educated, highly skilled immigrants bringing their talent to its shores. Now it's snatching defeat from the jaws of victory by turning away the truly best and brightest. These companies aren't the visa abusers. The bo…
@aagdhillon @aagdhillon on x
As @AGToddBlanche mentioned, we are proud of the lawyers in @CivilRights IER section for leading the way investigating PERM abuses as a form of employment discrimination. Glad to partner with Labor & EEOC on these important cases!
@timburchett Tim Burchett on x
End the H-1B program. America first. Why should we pay countries to spy on us when they will do it for free.
r/amazonemployees r on reddit
Microsoft is being suspended from program to apply for green cards for H-1B visa workers, Vance says
r/IndianH1Bs r on reddit
Microsoft is being suspended from program to apply for green cards for H-1B visa workers, Vance says
r/USCIS r on reddit
Microsoft is being suspended from program to apply for green cards for H-1B visa workers, Vance says
r/SeattleAreaRE r on reddit
Trump restricting H1Bs at Microsoft
r/news r on reddit
Microsoft is being suspended from program to apply for green cards for H-1B visa workers, Vance says
r/microsoft r on reddit
Microsoft is being suspended from program to apply for green cards for H-1B visa workers, Vance says
r/politics r on reddit
Microsoft is being suspended from program to apply for green cards for H-1B visa workers, Vance says
NewsMax.com Jim Thomas on x
Sec. Mullin to Newsmax: Vance ‘Spot On’ on Microsoft PERM
@ccpecknold Chad Pecknold on x
“If you do the math, for every worker that Microsoft laid off, they replaced that worker with one and a half foreign indentured servants.” — Vice President J.D. Vance https://apnews.com/...
@tomwarren Tom Warren on x
on the same day Trump celebrates Microsoft CEO Satya Nadella's contributions to the US, the Trump administration has accused Microsoft of abusing the visa system to bring in more foreign workers. Microsoft has now fired back against the accusations https://www.theverge.com/...
@bulwarkclips @bulwarkclips on x
Q: “How do you define socialism personally?” Vance: “I think in reality, what it actually means in the American context is that you want to replace American workers with foreign workers, and you want boys to play in girls' sports.”
@russellbrandom Russell Brandom on x
Very odd to single out a particular company instead of attempting to change the program https://www.reuters.com/...
@dugalira Ira Dugal on x
Cognizant, Infosys, Tata, Wipro, HCL and Capgemini among those impacted https://www.reuters.com/...
@jordannovet Jordan Novet on x
Satya Nadella had an H1-B, as he recounted in his book “Hit Refresh” https://www.ndtv.com/...
@jdvance JD Vance on x
Thank you @Sonderling47 , @AGToddBlanche , @StephenM , @AFergusonFTC , and @USLaborIG for this major effort in the fight against fraud. It's time these jobs that were stolen from American workers finally go to Americans, and this step is going to make sure the wrongs of the past…
@warddpatrick Patrick Ward on x
VP Vance this morning: we have decided to suspend the PERM program for Microsoft...you're a great American company, but you've got to hire great American workers. Later today, President Trump will award Microsoft CEO Satya Nadella National Medal of Technology and Innovation
@amritabhinder Amrita Bhinder on x
US suspending permanent residency program for Microsoft, US Vice President JD Vance said that the federal government was suspending Microsoft from a program that allows skilled foreign workers to gain permanent residency, citing alleged fraud. https://www.reuters.com/...
@mcfaul Michael McFaul on x
Ironic that the Trump administration announces this visa ban on foreign employees on the same day that he is giving science awards to immigrants, Sergey Brin, Jensen Huang, Lisa Su, and Elon Musk.
@obrien Chris O'Brien on x
Let's build!
@jobsnowpr @jobsnowpr on x
@USLaborIG ... Thank you for taking care of Adobe, Microsoft, and the body shops! We've got a list with tons more ideas for you!
@sonderling47 Secretary Keith Sonderling on x
We're cutting off the head of the snake and protecting American Workers. Beginning today, @USDOL is SUSPENDING Microsoft and Adobe among other companies from the permanent visa program. After a pipeline of systemic fraud has flooded our country for years with foreign labor, we'…
Matthew Boyle Matthew Boyle on linkedin
The Trump administration said it would suspend an immigration program for Microsoft and other tech firms, alleging widespread abuse of a worker visa system. …
@marypcbuk Mary Branscombe on bluesky
Who didn't pay Trump enough money/send enough shiny trophies? — H1B probably needs reforming but not like this [embedded post]
@jake.sooscreek.productions Jake on bluesky
Uh oh, defense contracts at Microsoft could be taking a turn. Suspended from H1-B to green card applications for fraud 👀
@crampell Catherine Rampell on bluesky
Trump admin is suspending a bunch of tech companies (Microsoft, Adobe, Cognizant, Infosys, Tata, Wipro, HCL, Capgemini) from participation in the H-1B PERM program, alleging fraud. — Some other tech firms (Apple, Amazon, Google, etc.) notably absent from the list.
@okane.fyi Sean O'Kane on bluesky
but they called it “SI” [embedded post]
r/InterstellarKinetics r on reddit
BREAKING: The Trump Administration Suspends Microsoft & 7 Other Firms From A Program Allowing Foreign Workers To Apply For Green Cards …
r/DevelEire r on reddit
Microsoft is being suspended from program to apply for green cards for H-1B visa workers, Vance says
r/microsoft r on reddit
Microsoft Comment on Recent Immigration Questions
r/redmond r on reddit
The Trump administration is suspending Microsoft from a green card program, alleging fraud
r/Layoffs r on reddit
Microsoft suspended from a green card program, alleging fraud
r/politics r on reddit
US suspends Microsoft, major IT firms from key green card program
r/asianamerican r on reddit
Microsoft is being suspended from program to apply for green cards for H-1B visa workers, Vance says
r/UpliftingNews r on reddit
US suspends Microsoft, major IT firms from key green card program
r/MicrosoftRewards r on reddit
Don't worry, it's just a temporary suspension and should automatically lift once you use the program in good faith.
Christopher Rice, Ph.D. Christopher Rice, Ph.D. on linkedin
Why does my gut tell me that Sam Altman is using his newfound government power to get in a little revenge on Microsoft here? …
@pamspaulding Pam Spaulding on bluesky
Does Trump secretly like forcing JD to do media cleanup? 😂 — Vance makes the announcement about suspension of Microsoft for its use of the H1B visa program on the same day Grandpa Chaos awarded the National Medal of Tech & Innovation to Microsoft CEO Satya Nadella. …
r/CanadianVisaReform r on reddit
Can we take a page from our neighbours? We should scrap the LMIA program entirely ,not just rebrand it ,until we bring our unemployment rate down.
@wokemoosensquirrel @wokemoosensquirrel on bluesky
I guess I agree with Vance on something — Vance said Microsoft laid off 6,000 American workers but also obtained 6,300 H-1B visas and almost 3,000 green cards. — “...for every worker laid off, they replaced that worker with one and a half foreign indentured servants,” — apn…
r/nri r on reddit
The Trump administration is suspending Microsoft from a green card program, alleging fraud
Manoj Sivakumar Manoj Sivakumar on linkedin
Microsoft is an ICONIC company filled with extremely talented individuals. I started and spent the first 6 years of my career there and another 4 …

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