Microsoft and Adobe PERM Sponsorship Suspensions Draw Investor Attention
The Labor Department suspended new and pending PERM applications involving Microsoft, Adobe, and six IT outsourcers, a step tied to green card sponsorship. Microsoft said most of its US employees are American and that it pays H-1B workers comparably, while Vice President JD Vance criticized the company’s use of the visa system. The article compares the firms’ R&D and stock-based compensation spending but notes those figures do not directly measure the affected employees or costs.
The Labor Department halted acceptance and processing of new and pending PERM filings tied to Microsoft, Adobe, and six IT outsourcing firms. PERM is a prerequisite for employer-sponsored permanent residency, often for workers already on H-1B visas. The action does not cancel existing H-1B status.
Microsoft said most of its U.S. workforce is American and that H-1B employees receive pay comparable to peers. It also reported that 78% of its H-1B petitions in the prior year were renewals for current staff. Adobe had 215 unresolved PERM requests paused by September 25.
The suspension could create uncertainty for foreign-born employees at the named companies who rely on employer sponsorship for permanent residency, as well as their families. It may make hiring and retaining staff harder if the pause lasts, potentially affecting teams and projects. Broader effects on the tech labor market remain unclear, since the announcement alone does not establish measurable earnings or cost impacts.