Microsoft has defended its H-1B visa practices, stating that most of its recent filings were for existing employees rather than new overseas hires, following a sharp escalation in scrutiny from the Trump administration.
According to a company statement reported by The Hindu BusinessLine, 80% of the approximately 6,000 H-1B applications Microsoft submitted during the last fiscal year were intended to extend or change the immigration status of existing employees.
The clarification came hours after US Vice President J D Vance announced Microsoft's suspension from a federal programme used to sponsor employment-based green cards.
The development is being closely watched in India, where technology professionals account for a significant share of H-1B visa beneficiaries and where concerns have grown over tighter US immigration enforcement.
Microsoft pushes back against allegations
Microsoft's response followed remarks from Vance, who accused the company of misusing immigration pathways while reducing parts of its US workforce.
In its statement, Microsoft said the overwhelming majority of its employees in the United States are American citizens and reiterated its commitment to the domestic workforce.
The company also provided additional context around its H-1B filings.
Key points from Microsoft's response include:
- Approximately 6,000 H-1B applications were filed during the last fiscal year.
- Around 80% of those filings were for extensions or status changes involving existing employees.
- The remaining applications were primarily for individuals already legally residing in the United States.
- Microsoft said those new employee filings represented around 1% of its US workforce.
- The company stated those workers were "not new arrivals" to the country.
Microsoft added that it would provide further information to the administration regarding its hiring and immigration practices.
Company highlights pay and talent policies
The technology giant also defended its compensation practices for H-1B employees.
Microsoft said it files H-1B petitions only for individuals who meet the programme's eligibility requirements and maintains compensation levels that rank among the highest in the technology sector.
The company further stated that employees working under H-1B visas receive compensation comparable to colleagues performing similar roles.
Microsoft said its workforce strategy combines domestic talent development, hiring within the United States and recruitment of specialised global talent when required.
Suspension targets green card sponsorship route
The controversy centres on the Permanent Labour Certification Programme (PERM), a key component of the US employment-based immigration system.
PERM certification is generally considered the first formal step for employers seeking permanent residency or green cards for foreign workers.
Earlier, the Trump administration announced the suspension of Microsoft, Infosys, TCS, Wipro, HCLTech, Cognizant, Capgemini and Adobe from the programme. Under the decision, the US Department of Labor will not accept new PERM applications from the affected companies and will stop processing pending submissions involving them.
The administration has linked the action to broader concerns around immigration practices and the impact of foreign worker programmes on US employment opportunities.
Why the issue matters for Indian professionals
The dispute has wider implications beyond Microsoft.
Indian technology professionals represent the largest beneficiary group under the H-1B programme, making any policy changes affecting visa sponsorship, green card processing or employer participation highly significant for the country's technology workforce.
The latest developments also arrive as US authorities intensify scrutiny of employment-linked immigration programmes, including investigations into visa usage across both corporate employers and academic institutions.
For now, Microsoft has positioned its defence around the claim that most of its H-1B filings were tied to retaining and managing existing employees rather than bringing new workers into the country. Whether that explanation satisfies US regulators could shape the next phase of the administration's immigration enforcement agenda.
