Vance Claims Microsoft Replaced Laid-Off Workers with H-1B Visa Holders

Vice President JD Vance recently criticized Microsoft for allegedly substituting thousands of American workers it let go in 2025 with foreign employees holding H-1B visas. This statement came during a press conference where the Trump administration announced a suspension of eight technology companies from sponsoring green cards through the Labor Department’s PERM program, which processes permanent residency applications.

The PERM suspension targets firms accused of abusing visa programs, but it does not impact H-1B visas, which are temporary work permits allowing skilled foreign workers to be employed in the United States. Still, the H-1B visa approval data provides insight into how reliant some companies are on foreign workers to fill their labor needs.

Data from the U.S. Citizenship and Immigration Services (USCIS) H-1B Employer Data Hub shows that Microsoft received over 6,000 H-1B approvals in fiscal year 2025, making it one of the largest sponsors of this visa category. Vice President Vance highlighted this figure in his remarks, stating, "If you do the math, for every worker that Microsoft laid off, they replaced that worker with one and a half foreign indentured servants." He also emphasized the longstanding positive relationship between the government and Microsoft, calling it "a great American company."

However, the data reveals a more nuanced picture. While Microsoft did see more than 6,000 H-1B approvals, approximately two-thirds of these were for workers already employed at the company, rather than new hires. This contrasts with Amazon, which had nearly 19,200 H-1B approvals in the same period, mostly for new employees. Despite Amazon being the largest sponsor of H-1B visas in 2025, it was not included in the recent suspension list.

The companies suspended are mostly IT services and consulting firms and rank among the top 50 H-1B sponsors nationwide. Adobe, ranked 45th, was the smallest company affected by the suspension. The government’s action reflects growing concerns among some policymakers that visa programs may disadvantage American workers by encouraging companies to hire foreign labor instead.

During the same press conference, Labor Department Inspector General Anthony D’Esposito announced an investigation into alleged fraud involving J-1 visas at nine major U.S. universities. The J-1 visa is commonly used for exchange visitors including students and interns. This investigation is part of a broader effort to scrutinize visa programs and prevent misuse.

The debate over H-1B and other visa programs touches on the balance between attracting skilled talent from abroad and protecting domestic jobs. The tech sector, in particular, has long relied on these visas to fill specialized roles that are difficult to staff locally. Microsoft, Amazon, and Meta remain some of the most prominent companies utilizing the H-1B program to support their workforce needs.

Microsoft historically led in H-1B sponsorship before being surpassed by Amazon in 2017. Since then, Amazon has maintained a significantly higher number of approvals annually, approximately three times that of Microsoft. Meta also stands as a major sponsor, with over 6,200 approvals in 2025. Neither Amazon nor Meta faced suspension under the current crackdown, suggesting the government’s focus is more targeted toward specific firms rather than the industry as a whole.

This development illustrates the ongoing scrutiny of U.S. immigration policies related to employment-based visas. As the technology sector continues to evolve, the role of foreign workers remains a critical topic of discussion in shaping future workforce strategies and regulatory frameworks.