Infosys says PERM green‑card suspension will not materially affect its US operations
NEWZA Editorial Team•
⚡ Key Financial Takeaways
Infosys announced it does not expect a material impact from the US Department of Labor’s suspension of its PERM green‑card applications.
The suspension is part of a wider US crackdown that also includes TCS, Cognizant, Microsoft, Adobe and Wipro.
US Labour Secretary Keith Sonderling said the firms collectively sought almost 3 million foreign workers since 2009, receiving over 230,000 H‑1B approvals and 100,000 permanent labour certifications.
Infosys highlighted its investment in a local US workforce and innovation hubs, reaffirming compliance with US laws.
💡 Why It Matters
The PERM suspension directly touches the talent pipeline that Indian IT firms rely on to service US clients. While Infosys says the impact will be limited, the broader US crackdown could reshape hiring strategies, increase compliance costs, and affect the competitive dynamics among global IT service providers.
Infosys downplays impact of PERM suspension Infosys, the Indian IT services giant ranked second in the country, filed an exchange‑listed statement on Saturday indicating that the recent suspension of its Permanent Labor Certification (PERM) applications by the US Department of Labor is not expected to have a material effect on its business.
The company said it welcomes the chance to cooperate with the Department of Labor and other agencies, and reiterated its commitment to its US employees, clients and communities while complying with all applicable regulations.
US government’s broader crackdown The suspension follows a Thursday announcement by US Labour Secretary Keith Sonderling that several major technology and consulting firms – including Tata Consultancy Services, Cognizant, Microsoft, Adobe, Infosys and Wipro – would be barred from the PERM green‑card programme. The move is framed as part of the Trump administration’s effort to curb alleged abuse of the H‑1B visa system.
Vice President JD Vance, speaking at a press conference on visa fraud, accused tech firms of exploiting the H‑1B programme and warned that the action sends a strong signal that the administration will not tolerate discrimination against American workers.
Scale of foreign‑worker requests According to Sonderling, the companies named have collectively sought nearly 3 million foreign workers since 2009, securing more than 230,000 H‑1B visa approvals and over 100,000 permanent labour certifications. He argued that these numbers represent “hundreds of thousands of jobs” taken from US workers.
Infosys’ response and outlook Infosys highlighted its long‑term investment in building a robust local workforce and technology‑innovation hubs across the United States. While acknowledging the regulatory scrutiny, the firm maintains that its existing US operations and talent pipeline are sufficiently diversified to absorb any short‑term disruptions.
The company’s statement did not provide specific figures on how many PERM applications are currently pending or the proportion of its US staff that might be affected.
What investors should monitor Stakeholders will be watching for any further guidance from the US Department of Labor, potential legal challenges, and whether the suspension leads to changes in hiring practices for the listed firms. Any clarification on the timeline for reinstating PERM processing could also influence market sentiment toward Indian IT service exporters.
🏛️ Background & Context
The PERM (Permanent Labor Certification) process is a key step for foreign workers to obtain US green cards through employer sponsorship. In recent years, US policymakers have intensified scrutiny of the H‑1B visa programme, alleging that some firms use it to replace American workers with lower‑cost foreign labor. The current suspension is part of that heightened enforcement.
👁️ What To Watch Next
Future developments to watch include: (1) any official clarification from the US Department of Labor on the duration of the suspension; (2) potential legal actions by the affected firms; (3) changes in US immigration policy under the current administration that could either tighten or relax green‑card processing for tech companies; and (4) Infosys’ quarterly reports for any revisions to its US hiring forecasts.
