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Federal action could complicate Microsoft’s effort to keep foreign tech workers in U.S.
The Trump administration has suspended Microsoft’s use of a program for seeking green cards for employees on H-1B visas, though the company can still hire H-1B workers. The move could make it harder for the Redmond-based company to recruit international employees seeking permanent U.S. residency.
REDMOND, Wash. — The Trump administration has suspended Microsoft’s use of a program that lets employers seek green cards for workers in the United States on H-1B visas, a decision that could make it harder for the technology company to recruit foreign workers hoping to stay in the country long term.
The suspension does not prevent Microsoft from hiring employees on H-1B visas, which are commonly used for specialized jobs, particularly in the technology industry. But it limits one route for the company to help those workers pursue permanent residency.
Vice President JD Vance accused Microsoft of fraud Thursday, arguing that the company laid off 6,000 U.S. employees last year while obtaining 6,300 H-1B visas. He also contended that many workers on the visas earn less than U.S. employees in comparable roles.
Microsoft disputed that account. The company said most of its U.S. employees are American and that 80% of its 6,000 H-1B visa applications in the previous fiscal year were for extensions or changes in status for current employees, rather than new hires. It also said H-1B employees are paid the same as other workers doing comparable work.
“Microsoft succeeds as a global technology leader by developing the world’s best technology workforce,” the company said in a statement, adding that it hires American workers while attracting talent from around the world.
U.S. data ranks Microsoft fifth among corporate users of H-1B visas in the current fiscal year. Amazon ranks first.
The decision has potential implications beyond Microsoft, as the Seattle region’s technology sector relies on a mix of local and international expertise. Mark Muro, a senior fellow at Brookings Metro, said companies need specialized skills in addition to local talent and warned that restrictions could affect the industry’s ability to compete for workers.
“Talent is the coin of the realm,” Muro said, adding that Seattle and Silicon Valley have benefited substantially from access to international workers.
Giovanni Peri, an economics professor at UC Davis, said skilled immigration does not simply displace a fixed number of U.S. workers. He argued that hiring specialized employees can help companies develop new ideas, grow and create additional jobs. If workers instead move to other regions or countries, he said, local economic growth could slow.