The U.S. Department of Labor has suspended Microsoft from the PERM program, a key pathway for sponsoring skilled foreign workers for permanent residency. The action is part of a broader federal investigation into allegations that Microsoft misused visa programs, including claims that it laid off thousands of U.S. workers while hiring foreign nationals on H-1B visas.
The suspension blocks Microsoft from filing new or pending permanent labor certifications. It could complicate the company’s efforts to retain specialized talent, particularly in competitive fields such as AI.
Analysts suggest the near-term earnings impact may be limited. The move places Microsoft at the center of a government crackdown on visa usage, adding political scrutiny and policy risk for the company.