Trump Administration Criticizes Xbox After Mass Layoffs and Tightens Rules for Foreigners

The US government has paused the processing of employment-based green cards for tech giants, while JD Vance stated that Microsoft is laying off American workers while simultaneously hiring foreign specialists.

Donald Trump’s administration suspended green card processing for employees at Microsoft, Adobe, and several other companies, and Microsoft faced accusations of laying off Americans while hiring foreign specialists.

The US Department of Labor stopped accepting new applications under the PERM program and reviewing documents already submitted. This procedure is required to obtain many employment-based green cards, although the restrictions do not mean a complete suspension of all visas for foreign nationals.

The measures also affected consulting firms Cognizant, Infosys, Tata Consultancy Services, Wipro, HCL Technologies, and Capgemini.

Vice President JD Vance accused Microsoft, specifically Xbox, of laying off American employees while simultaneously using foreign hiring programs.

Microsoft stated that about 80% of its H-1B visa applications for the last fiscal year involved employees already working at the company who were extending their stay or changing status. The company also claims it pays them on par with colleagues in similar positions.

The audits also affected nine US universities. The duration of the restrictions is currently unknown. Foreign specialists face delays in obtaining permanent residency, and tech companies have run into uncertainty when planning their hiring.