The US government is suspending several major technology companies, including Adobe and Microsoft, from a program that creates a path to long-term residency for skilled foreign workers, amid allegations of fraud. The move comes as the White House pressures businesses to hire more American workers.
Speaking at a press conference on Thursday, US Vice President JD Vance said: "Our message to Microsoft is: You're a great American company, but you have to hire great American workers."
According to Vance, the tech company headquartered in Redmond, Washington, laid off 6,000 American workers while obtaining 6,300 H-1B visas and nearly 3,000 green cards.
"You can't lay off American workers and replace them with indentured foreign workers," Vance said. "When someone comes here, they are completely dependent on that company. If they lose their job, they have to leave the country."
According to Layoffs.fyi, which tracks job cuts in the tech and startup sectors, more than 131,000 layoffs have been recorded in the technology industry in 2026 alone.
Both Adobe and Microsoft did not respond to Al Jazeera's requests for comment.
Labor Secretary Keith Sonderling also said several major information technology companies would be suspended from the program, including Indian tech giants Infosys and Tata Consultancy Services.
The US Department of Labor said it had uncovered $22 billion in visa fraud. "Today, we are protecting something far more valuable than any dollar figure. We are protecting American workers," Sonderling said.
At the press conference, officials also announced tighter measures tied to allegations of J-1 visa fraud at nine universities, including MIT, Harvard, Yale, Stanford and Cal State, accusing the schools of bringing in international students to drive down wages for American workers. The J-1 visa allows foreigners to enter the US temporarily for educational or cultural programs; universities use it to host doctoral researchers or international scholars.
Vance claimed that when universities hire an American as a researcher, that person earns more than $20,000 more than someone brought in on a J-1 visa. Al Jazeera requested data to support the claim, but the White House did not respond.
Following the news, Microsoft shares fell 7.5 percent, while Adobe shares rose 4 percent in mid-day trading on Thursday.
