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US suspends Microsoft, Adobe from visa sponsorship over fraud allegations

The United States has suspended Microsoft and Adobe from its visa programme following investigations into alleged fraud involving international worker recruitment. The probe has also expanded to include universities suspected of exploiting foreign students to suppress domestic wage costs.

LSN World News · 8 October 2026

US suspends Microsoft, Adobe from visa sponsorship over fraud allegations

US authorities have moved to suspend Microsoft Corporation and Adobe Inc. from sponsoring visa applicants, citing ongoing fraud investigations into their recruitment practices. The action marks an escalation in scrutiny of major technology companies' use of employment-based visa programmes, which allow US firms to hire skilled foreign workers.

The suspension comes as federal investigators examine whether the two software giants manipulated their hiring processes or misrepresented positions to circumvent requirements that they recruit qualified American workers first. Both companies are among the largest users of the H-1B visa programme, which permits temporary employment of specialty occupation workers.

The investigation has broadened beyond corporate recruitment to encompass educational institutions. Authorities are scrutinising universities for allegedly exploiting international student visa programmes as a mechanism to suppress American wage levels by flooding the labour market with foreign talent willing to accept lower compensation. Universities have long relied on international student enrolment as a revenue source, particularly in graduate programmes.

Officials said the suspensions would remain in effect pending the completion of the fraud investigations. Both Microsoft and Adobe have substantial workforces in the United States and regularly sponsor visa applications. The companies have not yet publicly responded to the suspension announcement.