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Top US Labor Department official issues stern warning after Microsoft layoffs: 'Don't screw with American workers'

Labor Department Inspector General Anthony D’Esposito warned Microsoft against using employment visa programs to undermine US workers. 

Published on: Oct 30, 2026, 12:13:34 IST
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US Department of Labor Inspector General Anthony D’Esposito has issued a stern warning over the use of employment visa programs, saying employers must not undermine American workers. His remarks came after Microsoft announced voluntary buyout offers for about 60,000 employees and amid a federal suspension of the company’s employment-based green card processing.

D’Esposito warns Microsoft against using visa programs as a ‘back door’ into US. (Bloomberg)
D’Esposito warns Microsoft against using visa programs as a ‘back door’ into US. (Bloomberg)

“Don’t screw American workers. Don’t use visa programs as a back door into our nation,” D’Esposito wrote on X on Thursday, sharing a post about comments allegedly made by Microsoft’s cloud and AI chief, Scott Guthrie, to employees. “We were clear. You were hoping we were kidding. We’re not,” D'Esposito added. HT.com could not independently verify the authenticity of the video shared by the US Department of Labor Inspector General.

The warning, however, comes amid increased scrutiny by the Donald Trump administration of employers’ use of foreign-worker visa programs and their hiring and layoff practices.

Microsoft offers buyouts to 60,000 employees

Microsoft announced a voluntary exit offer on October 26 for eligible employees in participating teams across the United States, India, Canada, and the United Kingdom. According to the company’s official announcement, the program is available to eligible employees at level 70 and below.

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The company said the offer would provide financial support and career-planning resources to employees considering leaving. Participation varies by organization and business priorities.

The announcement came as Microsoft continued investing heavily in artificial intelligence infrastructure. The company has not said how many employees will accept the offer or how many visa holders could be affected.

D’Esposito’s post quoted a social media post, which cited an alleged internal question-and-answer session involving Guthrie, Microsoft’s executive vice president for Cloud + AI.

According to that post, Guthrie told employees Microsoft wanted to bring more talent into the United States, would continue sponsoring visa and green card holders, and was working with the administration to obtain clarity on immigration-related decisions. The authenticity of this clip could not be independently verified.

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In an October 8 statement, Microsoft said about 80% of the roughly 6,000 H-1B applications it submitted in the previous fiscal year involved extensions or changes of status for existing employees.

US suspends PERM processing for Microsoft

The administration announced a suspension of permanent labor certification processing involving Microsoft and seven other employers on October 8. The PERM program is a key step in the employment-based green card process.

Labor Secretary Keith Sonderling said the department would not accept new applications or process pending applications involving the named companies, according to reports of the announcement.

The department has not publicly detailed the suspension’s duration or provided a comprehensive explanation in a formal notice. The action does not, by itself, mean that affected workers have lost their existing visas or green cards.

  • Asmi
    ABOUT THE AUTHOR
    Asmi

    Asmi is a Senior Content Producer primarily covering stories related to NRIs, immigration, visas, citizenship and global mobility. She closely follows developments that affect Indians living, working and studying abroad, with a particular focus on translating complex policies and international developments into clear, accessible stories for readers. As part of the US Desk, Asmi also reports on a wide range of political, economic and social developments in the United States, exploring their relevance to Indian and global audiences. Her work spans breaking news, features, trends and explanatory stories, with an emphasis on accuracy, timely reporting and audience-focused storytelling. Asmi likes finding the human angle behind major developments and bringing context to stories that can often feel complicated or distant. She is especially interested in stories around immigration, life abroad, careers, education and the experiences of the Indian diaspora, while also exploring a wide range of topics that spark curiosity and conversation. Outside the newsroom, Asmi is an avid reader and loves travelling, discovering new places, experiencing different cultures and collecting stories along the way.Read More

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