Punjab Newsline | Washington
US Vice President JD Vance has accused Microsoft and several major IT companies of misusing the H-1B visa programme, alleging that they are laying off American employees and replacing them with foreign workers willing to work for lower salaries.
Vance also described workers brought to the United States through foreign outsourcing companies as “indentured servants”, alleging that the practice helps corporations cut costs while putting downward pressure on American wages.
According to Vance, H-1B visa holders in the US earn an average of $20,000 less than American citizens working in comparable positions. He claimed that the wage gap could reach $48,000 in cases involving workers brought into the country through foreign outsourcing firms.
Targeting Microsoft, Vance alleged that the company laid off around 6,000 American employees in 2025 while securing approvals for more than 6,000 H-1B visas. He also claimed that Microsoft filed 3,682 labour certification applications linked to the process of obtaining permanent residency for foreign employees, with around 1,000 reportedly associated with positions previously held by American workers.
The allegations form part of a broader US administration crackdown on the employment of foreign workers and the use of visa programmes by major technology companies.
Besides Microsoft, companies named in connection with the action include Cognizant, Infosys, Tata Consultancy Services (TCS), Wipro, HCL Technologies, Capgemini and Adobe.
According to the account of the action, the US Department of Labor will not accept new labour certification applications from the affected companies, while applications already pending will not move forward. The action follows allegations that visa-related processes have been misused at the expense of American workers.
US Launches Probe into Nine Universities
In a related development, the US administration has announced investigations into nine universities, including Harvard, Yale and Stanford, over concerns that certain programs involving foreign students could be used to undermine wages and employment opportunities for American workers.
Anthony D'Esposito, Inspector General of the US Department of Labor, said subpoenas had been issued to universities as part of the investigation.
The probe will also examine whether foreign influence, improper financial relationships or potential violations of visa regulations have affected research programs supported by government funding.
The allegations against the companies and universities are part of ongoing scrutiny by US authorities. The claims and potential violations remain subject to investigation.
