White House bars Microsoft and seven other firms from having H1b visa applications processed

The US administration announced on 8 October that it will not process new or already submitted H1b work visa applications from technology company Microsoft and seven other firms. The H1b programme lets foreign professionals work in the United States and is the first step towards permanent residence. The British broadcaster BBC reported the news.

The accusations

US Vice President JD Vance accused Microsoft and other companies of fraud involving the H1b programme and related processes. He said Microsoft, one of the most valuable companies in the US, is replacing American workers with foreign contractors. Vance insisted that no other company has used the visa system as dishonestly as Microsoft.

He made similar accusations against Adobe, Cognizant, Infosys, Tata, Wipro, HCL and Capgemini.

US Labor Secretary Keith Sonderling said the government will not process any applications from these eight companies. He claimed that companies such as Microsoft, as well as universities, have become a haven for visa issuance that is flooding the US with foreign workers.

Microsoft's response

Vance claimed that Microsoft laid off about 6,000 employees while filing 6,800 H1b visa requests, which in his view shows that local workers are being replaced by foreigners to save on wages.

A Microsoft spokeswoman said 80% of the requested visas were for existing employees rather than newly hired specialists. She also said workers hired under the H1b programme are paid exactly the same as US citizens. According to her, most of the company's US employees are American, while it employs around 200,000 people worldwide.

No more than 85,000 H1b visas can be issued per year. The company hopes to receive additional information from the US administration.