Microsoft Says 80% of H-1B Filings Were for Existing Employees, Not New Hires

Microsoft has defended its use of the H-1B visa programme after the US government suspended the technology giant from the employment-based green-card labour certification process. The company said approximately 80% of the 6,000 H-1B applications it submitted during the last fiscal year were intended to extend or change the immigration status of existing employees rather than recruit new workers.

The statement came after US Vice President JD Vance accused Microsoft of relying on foreign workers while reducing its American workforce. Microsoft said the remaining applications for new employees involved people who were already legally present in the United States and represented just 1% of its US workforce. The response adds an important distinction to the debate over foreign-worker hiring, layoffs and permanent residency in the American technology industry.

Microsoft Explains Its H-1B Visa Filings

Microsoft said it submitted approximately 6,000 H-1B visa applications during the latest fiscal year. According to the company, most of these applications related to employees already working for Microsoft.

Microsoft H-1B filing details	Figure
Total applications submitted	Approximately 6,000
Applications for existing employees	80%
Applications for new employees	Approximately 20%
New employees represented as a share of US workforce	Around 1%

Source: Microsoft’s October 8, 2026, statement.

The company said the majority of its applications were submitted to extend or change the status of existing employees. Such filings can be part of the process of maintaining work authorization or changing an employee’s immigration status.

Microsoft also stressed that the new employees covered by the remaining filings were already legally present in the United States. It said these workers were not new arrivals to the country.

The distinction matters because H-1B application figures do not necessarily represent the number of people newly entering the US workforce. Applications can relate to existing employees as well as individuals joining an employer from elsewhere.

Why Is Microsoft Facing US Government Scrutiny?

The statement followed a public criticism of Microsoft’s foreign-worker hiring practices by Vice President JD Vance.

The Trump administration has argued that companies should prioritise American workers and should not use immigration programmes to replace domestic employees or reduce labour costs. Vance specifically questioned Microsoft’s use of H-1B workers while the company was also laying off US employees.

The government subsequently suspended Microsoft from the Permanent Labor Certification programme, commonly known as PERM. The programme is an important step in many employer-sponsored employment-based green-card applications.

US Labor Secretary Keith Sonderling said the department would not accept new or process pending PERM applications involving the suspended companies. The action also covers several major IT-services companies, including Infosys, Tata Consultancy Services, Wipro, HCL Technologies, Cognizant and Capgemini.

The suspension is part of a broader government effort to investigate whether certain employers have misused foreign-worker programmes.

Microsoft Says Most US Employees Are Americans

Microsoft also emphasised that the vast majority of its US employees are Americans.

In its official statement, the company said it supports the strength and talent of the American workforce and would provide the administration with additional information. It defended its hiring practices by arguing that the H-1B programme helps it recruit and retain skilled technology professionals.

Microsoft said it files H-1B petitions only for people who meet the programme’s requirements. It also said its H-1B employees receive the same pay as other employees performing comparable work and that its wages are among the highest in H-1B filings.

These statements represent Microsoft’s position in response to the government’s scrutiny. They do not, by themselves, resolve the allegations or determine the outcome of the federal investigations.

What Is the Difference Between H-1B and PERM?

The distinction between H-1B visas and PERM labour certification is central to understanding the latest development.

Programme	Purpose
H-1B visa	Allows eligible foreign professionals to work temporarily in the US in specialty occupations
PERM labour certification	Generally requires an employer to demonstrate that hiring a foreign worker for a particular permanent position meets labour-market requirements
Employment-based green card	Provides permanent US residency through an eligible immigration category

An H-1B worker may continue to hold valid work authorisation even if an employer encounters a problem with the PERM process. The latest suspension does not automatically cancel all existing H-1B visas held by employees of the affected companies.

However, workers whose green-card applications depend on new or pending PERM certifications could face delays or uncertainty. The effect on individual employees will depend on their immigration status and the stage of their cases.

Layoffs and Foreign Hiring at the Centre of the Debate

The controversy highlights a difficult question for large technology companies: how should employers balance workforce reductions in one part of the business with recruitment and retention of specialised talent elsewhere?

Technology companies regularly restructure teams as business priorities change. At the same time, they may need professionals with expertise in areas such as cloud computing, artificial intelligence, cybersecurity and enterprise software.

The US administration has argued that foreign-worker programmes must not undermine employment opportunities for American workers. Technology employers, meanwhile, maintain that access to specialised global talent is important for innovation and competitiveness.

Microsoft’s disclosure provides more information about the purpose of its visa filings, but the 80% figure alone does not establish whether the company’s hiring practices complied with every applicable requirement. That question will depend on the evidence examined by the authorities.

Why the Development Matters for Indian IT Companies

The US government’s action extends beyond Microsoft and affects several large Indian IT-services companies.

Infosys, Tata Consultancy Services, Wipro, HCL Technologies and Cognizant have substantial US businesses and employ professionals across multiple immigration categories. Their operations depend on a combination of US-based employees, local recruitment and international talent.

The PERM suspension could complicate permanent-residency planning for some employees at these firms. It could also increase uncertainty for workers who have spent years working in the US and are seeking employer-sponsored green cards.

For Indian IT companies, the longer-term implications will depend on the scope and duration of the restrictions and whether the government introduces additional measures affecting work visas.

The current action does not mean that the companies must immediately withdraw from the US market or that all their foreign employees have lost their right to work.

Could the Suspension Affect Microsoft’s Business?

The immediate effect is concentrated on the employment-based permanent-residency process rather than the company’s entire US workforce.

Nevertheless, prolonged restrictions could make workforce planning more complicated. Employees facing uncertainty over permanent residency may reconsider their long-term career plans, while employers may need to adjust recruitment, retention and immigration-support strategies.

The suspension could also add compliance costs if companies are required to provide additional documentation or respond to investigations. The size of any financial impact remains unclear, and there is no basis to assume that the action will automatically lead to a material decline in Microsoft’s revenue.

Investors will likely focus on whether the restrictions remain limited to PERM processing or become part of a wider set of constraints on skilled-worker immigration.

The Bigger Picture

Microsoft’s response illustrates why the number of H-1B filings should not automatically be treated as the number of new foreign workers hired. The company says four out of every five applications it submitted in the latest fiscal year related to existing employees, while the remaining filings involved people already legally in the US.

The wider dispute concerns how the H-1B system should balance access to global skills with protections for American workers. Microsoft’s explanation provides its account of the filings, while the US government’s allegations and investigations remain separate matters that must be assessed on their evidence.

Looking Ahead

The next important development will be whether Microsoft provides further documentation to the US administration and whether federal investigators clarify the basis and duration of the PERM suspension. The outcome could affect the company’s permanent-residency sponsorship process and provide a clearer picture of how the government intends to enforce its foreign-worker policies.

For employees and Indian IT companies, the distinction between temporary work authorisation and permanent residency remains crucial. The suspension creates uncertainty for affected green-card cases, but its broader consequences will depend on future government decisions and whether additional restrictions are introduced.