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Immigration · Report · File No. 261113-632

Labor watchdog jabs Microsoft over H-1B visas after outage; green card access cut

A Labor Department official mocked Microsoft's visa requests after its email outage. The Trump administration is using immigration rules against a big employer that has cut jobs.

Every quote in this story (2) was matched word for word against its source. How we work

My clippings
JD Vance
JD Vance. Photo: Emily J. Higgins, Public domain

The Trump administration again questioned Microsoft's use of H-1B visas on Friday, a day after a global outage hit some of the company's services. H-1B visas let U.S. employers hire foreign workers in specialized jobs. Most services, including Outlook email, were restored Friday morning 1.

Anthony D'Esposito, the Labor Department's inspector general, posted on X that Outlook was back. He then took a shot at the company over its visa filings 1.

Anthony D'Esposito
Microsoft can process 6,000 H-1B applications, but processing your inbox is apparently a tougher assignment.
Anthony D'Esposito, Inspector General, U.S. Department of Labor1

Microsoft blamed the outage on "a technical issue not related to cyber or AI/agents." Newsweek reported it was not clear whether staffing played any role in the outage or in how long repairs took. Some social media posts did question the company's recent layoffs 1.

The October green card cutoff

The jab builds on a fight that began in October. On Oct. 8, Vice President JD Vance announced that Microsoft, Adobe and six outsourcing firms could no longer submit applications, or have pending ones processed, through the Permanent Labor Certification Program, known as PERM. PERM is a step toward a green card, which grants permanent residence 2.

From Channel GOPAds called Vivek a murderer, used the President's familyJD Vance · 178 plays · captioned, with the source named

Vance said Microsoft cut 6,000 American workers last year while receiving 6,300 H-1B visas and nearly 3,000 green cards 2. He said: "You cannot lay off American workers and then replace them with foreign indentured servants" 2.

Microsoft disputes that account. It said about 6,000 H-1B applications filed last fiscal year were mostly for existing employees, with 80% seeking to extend or change their status. It also said it pays H-1B workers the same as others in comparable roles 2.

Microsoft President Brad Smith later told Politico the claim was wrong 1.

What was presented, as Microsoft replacing 6,000 people who lost their jobs with 9,000 foreigners, was, frankly, completely off base
Brad Smith, President, Microsoft1

What the numbers show

U.S. Citizenship and Immigration Services data showed Microsoft was approved for 6,258 H-1Bs in fiscal year 2025, though some were renewals. The year before, it had about 4,700 approvals. Newsweek said Microsoft is not the biggest H-1B user among tech firms 1.

Newsweek said Microsoft laid off about 16,000 workers worldwide in 2025. Vance's figure covered American workers only 12.

Newsweek asked Vance's office, D'Esposito's office, the Labor Department and Microsoft for comment on Friday. Its report did not say whether any had replied 1.

Why it matters

That matters because an inspector general is normally an internal watchdog. Here, one used a public post to mock a private company during a dispute with the administration. The pattern is that visa and labor rules are being used as leverage against a major employer.

The sources do not say what happens next for Microsoft's suspension. They also do not say how long it will last, and Microsoft has not been reported as changing course 12.

The Record

  1. Vice President JD Vance announced Microsoft, Adobe and six outsourcing firms were barred from the PERM green card process 2.
  2. A global outage hit some Microsoft services 1.
  3. Services were largely restored, and Labor Inspector General Anthony D'Esposito mocked Microsoft's H-1B filings on X 1.
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Sources

  1. Newsweek, “Trump Admin Questions Microsoft's H-1B Applications After Outage” (2026-11-13). newsweek.com/trump-admin-questions-microsoft-h1b-application
  2. KOMO News / Associated Press (via FOX 11), “Microsoft responds to green card program suspension, Trump administration alleging fraud” (2026-10-08). fox11online.com/news/nation-world/microsoft-redmond-washingt

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