The Trump administration’s decision to suspend Microsoft’s access to green cards for its H-1B visa holders faced criticism from the company’s president, Brad Smith. Speaking to Politico in Ireland, Smith refuted Vice President JD Vance’s claims that Microsoft was involved in widespread fraud over the PERM (program electronic review management) process by laying off a large number of workers while also applying for green cards.
“What was presented, as Microsoft replacing 6,000 people who lost their jobs with 9,000 foreigners, was, frankly, completely off base,” Smith said. “The vast majority of both the visa applications and green card applications were not for new employees but for people who had already been working at Microsoft.”
Smith mentioned that many of those seeking green cards had long tenures with Microsoft, but delays at the U.S. Citizenship and Immigration Services (USCIS) prolonged the process.
Microsoft PERM Suspension: Key Facts
During an October 8 press conference focused on addressing visa fraud, Vance and senior officials, including Labor Secretary Keith Sonderling and Attorney General Todd Blanche, announced a ban on multiple tech companies, including Microsoft, applying for permanent residency for H-1B employees. Vance highlighted concerns over Microsoft’s use of the PERM program.
“In the last year, Microsoft laid off 6,000 American workers,” Vance stated. “Simultaneously, the company gained 6,300 H-1B visas and nearly 3,000 green cards.”
He calculated that for each laid-off American, Microsoft hired one and a half ‘foreign indentured servants.’ Investigations into Microsoft, Adobe, and other IT companies such as Cognizant, Infosys, Tata, Wipro, HCL, and Capgemini were reported to be underway.
Stuart Anderson from the National Foundation for American Policy commented that the administration’s actions could drive companies to invest more outside the U.S., especially in research and development, affecting U.S. workers adversely.
The press event overlooked the fact that a large percentage of U.S. graduate students in AI and similar fields are international students. Moreover, a significant number of billion-dollar startups are founded by immigrants.
Smith’s Counterarguments
Addressing the public narrative, Smith emphasized that Microsoft hired 9,200 American workers in the past fiscal year, which was not widely reported. He urged White House officials to reconsider Microsoft’s actual hiring practices.
Smith expressed concerns over the Trump administration’s ban affecting U.S. ability to attract top international talent, a core purpose of the H-1B visa. Interestingly, President Trump honored several tech leaders, including former H-1B holder and Microsoft CEO Satya Nadella, for contributions to technology and science.
“Five of the six individuals honored by the president were immigrants,” Smith noted. “Together, the companies they lead represent over a quarter of the S&P 500’s market value.”
Focus on H-1B Visa
The H-1B has become central to the Trump administration’s immigration reforms. The visa, intended for skilled workers, especially in tech and healthcare, has faced scrutiny. Critics argue it displaces American workers for cheaper labor, citing layoff statistics to support their stance.
The PERM process allows H-1B holders to apply for green cards. Critics claim it enables exploiting loopholes, ensuring jobs seem exclusive to visa holders.
The administration aims to modify H-1B logistics while maintaining applicant numbers, implementing measures like a $100,000 application fee and revisiting applications at visa renewal points.
Supporters argue that H-1B visas fuel U.S. innovation and economic growth, fostering job creation for American and international employees. Smith reiterated that H-1B workers earn competitive wages, with Trump acknowledging the program’s role in attracting talent vital for American progress.
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