Microsoft on Thursday rejected allegations of abuse of the H-1B visa system, saying 80 per cent of the roughly 6,000 applications it filed last fiscal year were for existing employees rather than new hires.
The statement came hours after US Vice President JD Vance announced that Microsoft had been suspended from a government programme used by companies to seek permanent residency for foreign workers.
Microsoft defends H-1B filings
Microsoft said most of its US workforce was American and that it was ready to provide the administration with further information.
“Of the approximately 6,000 H-1B visa applications we submitted in the last fiscal year, 80% percent were to extend or change the status of existing Microsoft employees,” the company said.
Microsoft comment on recent immigration questionshttps://t.co/TFNkJI6ZSN
— Microsoft On the Issues (@MSFTIssues) October 8, 2026
It stressed that these applications were “not to hire new people”.
The remaining filings were for workers already legally in the US who chose to join Microsoft, the company said. Those employees represented about 1 per cent of its US workforce and were “not new arrivals” to the country.
Microsoft also said it only filed H-1B petitions for workers “who meet the rigorous standards of this visa category”.
Vance accuses Microsoft of abuse
Vance said Microsoft was suspended as part of the Trump administration’s wider crackdown on alleged visa fraud.
The US vice president accused the technology giant of laying off 6,000 American workers while replacing them with 6,300 H-1B workers.
“Our message to Microsoft is: you’re a great American company, but you’ve got to hire great American workers,” Vance told reporters at the White House.
The H-1B programme allows US companies to employ foreign workers in specialised occupations, particularly in sectors such as technology and engineering.
Microsoft disputed the suggestion that it was using the programme to replace American workers, saying it paid H-1B employees the same as other workers doing comparable jobs.
“We pay our employees some of the highest compensation in the tech sector, and our wages are among the highest of all H-1B filings,” the company’s statement added.
Green card route also affected
The suspension affects the US Labour Department’s Permanent Labour Certification programme, known as PERM. It is a key step for many foreign workers seeking permanent residency, or a green card, in the US.
Vance also announced investigations into several leading US universities over their use of a separate visa programme for international researchers and academics.
The Trump administration has intensified scrutiny of immigration and visa programmes, arguing that they should not be used to displace American workers.
Microsoft, meanwhile, said its approach was focused on hiring American workers while also attracting skilled talent from around the world.
“We do this by strengthening this country’s talent pipeline, hiring American workers, and attracting the best talent from around the world,” it added.
(With inputs from agencies)
