US Labour Department Bars Major IT Firms From Green Card Programme

UPDATE - follow-up to US suspends 8 IT firms from permanent labour certification programme: The United States has suspended eight major IT companies from the Permanent Labour Certification Programme, which lets businesses apply for green cards for workers on H-1B visas.

Firms Affected

The suspended firms are Cognizant, Infosys, Tata, Wipro, HCL, Capgemini, Microsoft and Adobe. US Labour Secretary Keith Sonderling announced the decision alongside Vice President JD Vance, who leads the US Anti-Fraud Task Force. Sonderling stated that the administration is suspending some of the largest IT outsourcing firms in the world from the scheme.

Market Impact

Following the announcement, American Depositary Receipts of Infosys and Wipro fell about 3% each in Thursday trading. India's $300 billion IT sector earns roughly 57% of its revenue from the US market and has long relied on US work visa programmes.

Government Statements

Vice President JD Vance criticized Microsoft specifically for laying off 6,000 American workers last year while securing 6,300 H-1B visas and nearly 3,000 green cards. Vance accused the company of abusing a system meant to help firms recruit foreign workers only when local talent cannot be found. Officials also raised concerns about universities using J-1 visas for international students.

Context

The Permanent Labour Certification Programme requires companies to first advertise jobs in the US to show a shortage of domestic workers before applying for a green card. The H-1B visa system has faced ongoing criticism from supporters of the administration who argue it undercuts local workers.