US suspends Microsoft, Infosys, TCS, Wipro from green card programme amid PERM fraud probe

The Trump administration has suspended Microsoft and several major Indian and global technology companies from the US employment-based green card process, escalating its crackdown on alleged abuse of foreign-worker programmes and putting another hurdle in the path of thousands of skilled professionals seeking permanent residency.

The US Department of Labor said Thursday it would stop accepting or processing new and pending applications under the Permanent Labor Certification Programme, or PERM, involving Microsoft, Adobe, Cognizant, Infosys, Tata, Wipro, HCL and Capgemini. The companies were named by Labor Secretary Keith Sonderling, who said the action was linked to multiple active federal investigations.

The move does not amount to a suspension of H-1B visas themselves. Instead, it targets PERM, a labour-certification process that is generally required before an employer can file for many employment-based green cards. Under PERM, companies must establish that they have tested the US labour market and that there are no qualified, willing and available American workers for the particular permanent position.

The decision is therefore particularly significant for foreign professionals already working in the US on H-1B visas who are being sponsored by their employers for permanent residency.

Vance targets Microsoft over layoffs and foreign-worker hiring

Vice President JD Vance singled out Microsoft while announcing the crackdown, accusing the company of exploiting the system by laying off American workers while continuing to use foreign-worker programmes.

Vance said Microsoft laid off about 6,000 American workers in 2025 but obtained roughly 6,300 H-1B visas and nearly 3,000 green cards. He argued that the figures showed a contradiction between the company’s workforce reductions and its continued reliance on foreign workers.

Vance also said Microsoft had filed 3,682 PERM applications, with nearly 1,000 involving positions from which American workers had been laid off, according to India Today.

“The H-1B visa programme is meant to allow companies to bring in really the best of the best from outside the United States of America for positions that are completely impossible to fill with American workers,” Vance said.

He accused Microsoft of effectively using the system to replace American employees with foreign workers and described H-1B workers as vulnerable because losing their jobs can put their immigration status at risk.

“Our message to Microsoft is: You’re a great American company, but you’ve got to hire great American workers,” Vance said.

Microsoft did not immediately respond to requests for comment from news organisations.

The administration’s decision comes at an unusual moment for Microsoft. Trump was scheduled to present Microsoft CEO Satya Nadella with the National Medal of Technology and Innovation on Thursday, hours after the administration announced the suspension.

The action also follows an earlier escalation against IT companies. In September, the Labor Department suspended Cognizant’s PERM filings amid an investigation into alleged fraud and misuse of employment-based immigration programmes. US authorities did not initially disclose the specific allegations or the number of applications affected.

Why the move matters for Indian IT workers

The inclusion of Infosys, Tata, Wipro, HCL and Cognizant makes Thursday’s announcement particularly consequential for Indian technology professionals.

Indian nationals account for a dominant share of H-1B beneficiaries. The visa allows US employers to employ foreign workers in specialised occupations, and technology companies have historically been among its biggest users. AP reported that nearly three-quarters of H-1B approvals go to workers from India.

PERM is different from H-1B. An H-1B visa provides temporary employment status, while PERM is generally an employer’s labour-certification step toward permanent residency for an eligible foreign employee.

That distinction is crucial because Thursday’s action does not automatically cancel an Indian worker’s existing H-1B visa or revoke an already-issued green card.

It can, however, disrupt the progression of employees whose employers have not yet completed the PERM stage of their green card sponsorship.

The consequences could be particularly serious for some H-1B holders approaching the normal six-year limit. Under US immigration rules, certain workers can obtain extensions beyond six years when their employment-based green-card process has reached specified stages. A prolonged inability to initiate or advance PERM can therefore become an important immigration issue for workers nearing those deadlines.

Indian professionals also face an unusually long employment-based green card backlog. The September 2026 US Visa Bulletin listed the EB-2 category for India as unavailable for final action, while the EB-3 final-action date for India was January 1, 2014.

That means the new PERM restrictions are hitting workers at a stage where many already face years of waiting before a green card can become available.

Crackdown extends beyond technology companies

The Labor Department’s action is part of a wider immigration crackdown that is no longer limited to H-1B workers.

Vance and Labor Department officials also announced investigations into nine universities, including Harvard, Yale and Stanford, over allegations involving international students and programmes used to bring foreign nationals into the US.

Labor Inspector General Anthony D’Esposito said subpoenas had already been served and that investigators would examine whether foreign influence, improper financial relationships or visa abuse were compromising federally funded research.

The administration has separately moved to tighten restrictions affecting international students. A proposal announced this week would require schools to pay a $70,000 fee for each international student participating in the Optional Practical Training programme, which permits eligible foreign students to work in jobs related to their studies.

The broader policy shift also includes restrictions on new H-1B entrants. A September presidential proclamation extended for another year a requirement under which covered H-1B petitions for workers outside the US must be accompanied by a $100,000 payment, subject to stated exceptions. The administration has justified the restrictions by arguing that the H-1B system has been used to replace American workers and suppress wages.

For Indian IT companies, the latest action therefore creates a new layer of uncertainty. The immediate issue is not the cancellation of H-1B visas, but the suspension of a key route through which employers seek permanent residency for foreign employees.

The administration’s allegations against the companies have not, however, been established as wrongdoing by a court, and officials have not publicly detailed individual allegations against every company named in Thursday’s announcement.

For thousands of Indian professionals, the practical question is now whether their employers can resume PERM filings after the federal investigations are completed — and how long the resulting disruption will last.

Infosys Q2 Profit Rises, Raises Revenue Outlook

Infosys posted a 4.7% rise in net profit for Q2 FY25, hitting Rs 6,506 crore, up from Rs 6,212 crore a year ago. Revenue grew 2.9% year-on-year, reaching Rs 40,986 crore. The company raised its full-year revenue growth forecast to 3.75-4.5% and announced a 16.7% interim dividend increase to Rs 21 per share, payable on November 8.

Strong performance was driven by strategic collaborations with Metro Bank, Proximus, TDC Net, and Posti. Infosys CFO Jayesh Sanghrajka stressed a focus on revenue growth and margins, while CEO Salil Parekh highlighted broad-based growth across sectors.

The company’s net profit for the quarter reached ₹6,506 crore, up from ₹6,212 crore in the same period last year. Meanwhile, its revenue for the quarter stood at ₹40,986 crore, marking a 2.9% year-on-year growth. Quarter-on-quarter, the company saw over 4% growth, with revenue climbing from ₹38,994 crore in the previous quarter.

The company has raised its full-year revenue growth guidance to 3.75-4.5%, showing optimism for the coming months. This increase in guidance comes as Infosys continues to leverage new strategic partnerships and strengthen its service offerings across key sectors.

Infosys also declared an interim dividend of ₹21 per share, reflecting a 16.7% hike compared to last year’s dividend. The payout is scheduled for November 8, underscoring Infosys’ strong financial position and commitment to rewarding its shareholders.

Broad-Based Growth and Margin Focus

During the first half of FY25, Infosys reported a year-over-year revenue growth of 2.9% in constant currency, with an operating margin of 21.1% for the second quarter. Infosys CEO Salil Parekh attributed this success to the company’s broad-based growth across various sectors and geographies, noting that the company saw 3.1% quarter-on-quarter growth in constant currency terms.

“We achieved strong growth in financial services, which was a key contributor to our performance this quarter,” Parekh said. This growth, along with steady client wins, has helped Infosys maintain momentum despite a challenging global economic environment.

Chief Financial Officer Jayesh Sanghrajka highlighted the company’s focus on accelerating revenue growth while maintaining a sharp focus on margin performance. “Our operating margin for the quarter was at 21.1%, driven by value-based pricing and efficient utilization of resources,” Sanghrajka said. He also pointed to the company’s strong cash generation, with free cash flow growing 25.2% year-on-year to reach $839 million. For the second consecutive quarter, Infosys achieved over 100% free cash flow conversion to net profits.

Infosys’ employee headcount rose by 2,456 in the quarter, bringing the total to 3,17,788. The company also approved the merger of WongDoody Inc., Blue Acorn iCi Inc., Outbox Systems Inc. (d.b.a. Simplus), and Kaleidoscope Animations Inc. into Infosys Nova Holdings LLC, further strengthening its business capabilities.

Strategic Collaborations and Future Outlook

Infosys continues to drive growth through strategic collaborations with key global players. The company entered a long-term collaboration with Metro Bank to enhance its IT and support functions, while also transforming the bank’s business operations. Metro Bank CEO Daniel Frumkin said the partnership would help the bank become more profitable and scalable in the long run.

The company also announced a collaboration with Proximus, a Belgian telecommunications provider, to explore new business opportunities. Proximus’ Chief Digital and IT Officer, Antonietta Mastroianni, welcomed the renewed partnership, highlighting its potential to unlock new opportunities.

Another key collaboration came with TDC Net, Denmark’s largest telecom infrastructure company. Infosys is set to help TDC Net transform into a more customer-centric technology company. TDC Net’s Chief Technology and Information Officer, Campbell Fraser, expressed confidence in Infosys’ ability to support their digital transformation.

Infosys also renewed its collaboration with Finland’s postal service, Posti, extending their partnership for another seven years to enhance customer experience and operational efficiency. Petteri Naulapää, Posti’s CIO and SVP, praised the ongoing collaboration and its role in driving innovation.

With these strategic partnerships and a strong financial outlook, Infosys is well-positioned for continued growth in the second half of the fiscal year.

 

Seven Companies Lose Over Rs 1 Lakh Crore in Market Cap Last Week

The combined market capitalisation of seven out of the top 10 companies declined by Rs 1,22,107 crore over the past week, with Tata Consultancy Services (TCS) and Reliance Industries Ltd (RIL) leading the losses.

Between October 7 and 11, Tata Group’s TCS saw its market cap drop by Rs 35,638 crore, settling at Rs 15,01,723 crore. RIL’s market cap fell by Rs 21,351 crore, bringing its valuation down to Rs 18,55,366 crore.

FMCG giant ITC also witnessed a significant decline, with its market cap decreasing by Rs 18,761 crore to Rs 6,10,933 crore. Meanwhile, Hindustan Unilever Limited (HUL) saw a reduction of Rs 16,047 crore in its market valuation, now standing at Rs 6,53,315 crore.

The market capitalisation of Life Insurance Corporation (LIC) dropped by Rs 13,946 crore to Rs 6,00,179 crore, while ICICI Bank’s valuation slipped by Rs 11,363 crore, bringing it to Rs 8,61,696 crore.

HDFC Bank, the largest private sector bank in the country, saw its market cap decrease by Rs 4,998 crore, settling at Rs 12,59,269 crore.

On the other hand, Bharti Airtel’s market cap surged by Rs 26,330 crore to Rs 9,60,435 crore, while Infosys gained Rs 6,913 crore, taking its valuation to Rs 8,03,440 crore. The State Bank of India (SBI) added Rs 3,034 crore, pushing its market cap to Rs 7,13,968 crore.

Last week, the Nifty fell by 50 points, or 0.20 percent, to 24,964, while the Sensex declined by 307 points, or 0.38 percent, closing at 81,381. This marked the second consecutive week of market losses.

Despite the decline, RIL maintained its position as India’s most valuable company, followed by TCS, HDFC Bank, Bharti Airtel, and ICICI Bank.

Market experts predict that the outlook for next week will be influenced by key domestic and global economic data, including India’s WPI and CPI for September, loan and deposit growth figures, Q2 earnings of Indian companies, and updates from the US, China, and Japan.

What’s Moonlighting? Infosys bans, IBM warns, Wipro cracks whip

As the issue of moonlighting or working elsewhere to make extra money in India is plaguing many tech giants after the Work From Home concession that entailed tech employees work remotely, several Indian tech giants are facing the challenge to keep their workforce committed and focused.

The ethical issue has been raised by tech services giant Infosys first, followed by cloud Major IBM on Wednesday. Infosys has already made it clear that the practice is not ethical and the company may fire those who are moonlighting.

However, no company has so far issued any framework to monitor its employees who are moonlighting as legally it is still daunting to gather evidence and withstand legal suits in courts. Secondly, the problem is not new in smaller and minor companies which have been struggling to pay higher wages to employees to retain them. Often, they blink to let the workforce work elsewhere in non-working hours.

Moreover, the issue is legally overwhelming for the companies as strict guidelines or framework of supervising or monitoring employees is often termed as violation of privacy rules in many courts and they may stand loose the legal battle even after firing such employees.

But the issue has already bogged down even major companies. Besides infosys, IBM Managing Director  Sandip Patel said that the company’s position is exactly that of the overall industry in the country. “All of our workers when they are employed, they sign an agreement which says that they are going to be working full-time for IBM. So moonlighting is not ethically right for them to get into,” he said.

However, some startups are encouraging employees to opt for moonlighting or work outside their primary working hours. Swiggy has encouraged the practice but the traditional companies are calling it cheating and unethical and issued warning to employees from practising Moonlighting even in extra hours.

In one case, a techie who was interviewed by a Hyderabad-based company found that he hired another techie to work on his behalf, while he is engaged in working on other projects. He has been summarily fired now but the issue has brought to light the glaring anomaly in misuse of a pact with the company.

Infosys has already warned employees on Monday against moonlighting, saying that involvement in such practice can result in “disciplinary action including termination of employment”. “No two-timing, no moonlighting”, the company said in an internal memo, adding that it “strictly discourages dual employment”.

Wipro Chairman Rishad Premji recently said that the concept of a second job amounts clearly to “plain and simple” cheating. “There is a lot of chatter about people moonlighting in the tech industry. This is cheating — plain and simple,” he emphasised.