The United States government is suspending several major tech companies, including Adobe and Microsoft, from a programme that gives skilled foreign workers a path to permanent residency amid allegations of fraud.
This comes amid pressure by the White House on companies to hire more Americans. âÂÂOur message to Microsoft is: YouâÂÂre a great American company, but youâÂÂve got to hire great American workers,â US Vice President JD Vance said at a news conference on Thursday.
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Vance added that the Redmond, Washington-based tech giant laid off 6,000 American workers, while obtaining 6,300 H-1B visas and almost 3,000 green cards.
âÂÂYou cannot lay off American workers and replace them with foreign indentured servants,â Vance said.
âÂÂWhen someone comes in, they are completely subordinate to that company. If they lose that job, they have to leave the country.âÂÂ
Across the tech sector, there have been more than 131,000 layoffs in 2026 alone, according to Layoffs.fyi, which tracks job cuts across the tech and startup industries.
Neither Adobe nor Microsoft responded to Al JazeeraâÂÂs request for comment.
Secretary of Labor Keith Sonderling also said that several major information technology firms will be suspended from the programme as well. Among them are Indian tech giants Infosys and Tata Consultancy Services.
The Department of Labor also said it had uncovered $22bn worth of visa fraud.
âÂÂToday we are protecting something far more valuable than any dollar amount. We are protecting the American worker,â Sonderling said.
During the news conference, officials also announced a crackdown on alleged J-1 visa fraud involving nine universities, including MIT, Harvard, Yale, Stanford and Cal State, amid allegations that they brought in international students to undercut US wages. A J-1 visa allows foreign nationals to enter the US temporarily for education or cultural programmes. Universities use these visas to bring in international PhD candidates or scholars.
Vance claimed that when schools employ an American as a researcher, that person earns $20,000 more than someone brought in under a J-1 visa.
Al Jazeera asked for data supporting this claim, but the White House did not respond.
MicrosoftâÂÂs stock slumped 7.5 percent on the heels of the news, while Adobe was up 4 percent in midday trading on Thursday.