Author: Nishtha Mehrotra | EQMint
The US government has suspended eight major companies from the Permanent Labour Certification (PERM) programme, a key step in sponsoring foreign workers for employment-based green cards. The companies include Indian IT majors TCS, Infosys, Wipro and HCLTech, alongside Microsoft, Adobe, Cognizant and Capgemini.
What Was Announced?
On October 8, 2026, US Labour Secretary Keith Sonderling announced the suspensions alongside Vice President JD Vance. Officials said the Department of Labour would stop accepting new PERM applications involving the companies and halt the processing of pending applications.
What Does the PERM Suspension Mean?
PERM is generally required before employers can file immigrant petitions for many employment-based green cards. The process requires employers to demonstrate that qualified, willing and available US workers cannot be found for the position.
The suspension does not automatically cancel existing H-1B visas or issued green cards. However, affected employees relying on employer-sponsored green card applications could face delays while the restrictions remain in place.
Why Microsoft Is Under Scrutiny
Vance alleged that Microsoft laid off 6,000 American workers in 2025 while receiving more than 6,000 H-1B approvals and filing 3,682 PERM applications. He also alleged that nearly 1,000 applications involved positions connected to workers the company had laid off. These are allegations made by US officials, not established findings of wrongdoing.
Impact on Indian IT Companies and Markets
TCS, Infosys, Wipro, HCLTech and Cognizant have substantial US operations and sponsor foreign technology professionals. Employees depending on these companies for PERM-based green card sponsorship could face uncertainty.
Despite the announcement, the Nifty IT index rose more than 3% on October 9, 2026, with investors also tracking TCS’s latest earnings.
Affected employees should consult their employers’ immigration teams and qualified immigration lawyers for guidance on pending applications and individual visa circumstances.
Disclaimer: This article is for information purposes only and is not legal advice. Readers should refer to official US government notices for the latest information.
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