H-1B Crackdown: 8 Companies Lose PERM Access, Including Microsoft

Episode 113


Episode Overview

The Trump administration took its H-1B crackdown public this week. At a press conference, JD Vance named eight companies (Microsoft, Adobe, Cognizant, Infosys, Tata Consultancy Services, Wipro, HCL, and Capgemini), and the Department of Labor suspended their use of the PERM program indefinitely, cutting them off from a key step in sponsoring H-1B workers for green cards. PERM is the process that lets H-1B workers stay beyond six years and apply for permanent residency. Vance said the eight companies have received more than 230,000 H-1B approvals and more than 100,000 permanent labor certifications since 2009, and that Microsoft laid off 6,000 workers last year while receiving 6,300 H-1B visas and nearly 3,000 green cards. Microsoft says roughly 80% of those were existing employees renewing or extending their status.

Pete and Peter back the move and call it long overdue. Most of the named firms are consultancies built around filing H-1Bs and placing workers at other companies, while Microsoft and Adobe happen to be two of the largest direct employers of H-1B workers. They also point out that the program is hard on the visa holders themselves, who often cannot leave a sponsoring employer without risking deportation. And they say offshoring, like last week’s DoorDash story, deserves the same scrutiny, since both let companies avoid hiring American workers. Their hope: the policy outlasts the next election.

Pete and Peter also meet a brand-new workplace term, “loud working,” from a Business Insider article. It is the opposite of quiet quitting: making sure your manager sees everything you are doing. Their verdict is that it is just smart career advice with a trendy name, as long as it does not turn into playing politics instead of doing good work.

Layoffs are back in the headlines. HubSpot is cutting roughly 600 jobs and Amazon announced more cuts, both citing a push to remove layers of middle management, and neither named AI as a reason. Surveillance camera company Flock cut about 18% of its staff, a few hundred people, in what has been attributed to public backlash against the company.

They close with a survey finding that 90% of workers say their employers expect more loyalty than they give back. Also in the results: 71% say companies focus more on profits than on employees compared with five years ago, only 4% say less, and 49% of workers who are not actively job hunting would still take a call from a recruiter. Pete and Peter’s take is that loyalty is the wrong word for the employment relationship, and they have a message for hiring managers: a team that looks happy may still be open to other offers.

Key Takeaways

  • The H-1B crackdown: eight companies named, and their PERM program access suspended indefinitely
  • JD Vance’s numbers: 230,000 H-1B approvals since 2009, and Microsoft’s 6,000 layoffs alongside 6,300 H-1B visas
  • Why Pete and Peter want offshoring held to the same standard
  • “Loud working,” the new opposite of quiet quitting
  • Layoffs at HubSpot (about 600), Amazon, and Flock (about 18% of staff)
  • Survey: 90% of workers say employers expect more loyalty than they give
  • 49% of workers not job hunting would still take a recruiter’s call
A closeup of Pete Newsome, looking into the camera and smiling.

Pete Newsome is the President of 4 Corner Resources, the staffing and recruiting firm he founded in 2005. 4 Corner is a member of the American Staffing Association and TechServe Alliance and is a 9-time ClearlyRated Best of Staffing winner. Recent awards and recognition include being named to Forbes’ Best Recruiting and Best Temporary Staffing Firms in America, Business Insider’s America’s Top Recruiting Firms, The Seminole 100, and The Golden 100. He hosts the Cornering The Job Market podcast and YouTube channel, including The Week in Jobs, a weekly podcast and livestream on U.S. job market data, trends and news. He also hosts The AI Worker YouTube channel, where he explores artificial intelligence’s impact on employment and the future of work. Connect with Pete on LinkedIn

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