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Microsoft just got cut off, folks.
Not fined, not strongly encouraged, not sent a sternly
worded letter. They got cut off.
In fact, the Trump administration just suspended Microsoft
from the green card pipeline.
Oh, and the guy that's holding the scissors, you guessed it,
J.D. Vance. Guys, that administration,
the one that the experts swore had sold you out to big
tech, turns out sold out looks more awfully like a shutdown.
In fact, the H-1B visa program is
meant to allow companies to bring in really
the best of the best from outside the United States
of America for positions that are completely impossible
to fill with American workers.
Unfortunately, the program has become rife
with fraud over the last several years, probably the
last several decades. There has been no company in the United States,
unfortunately, that has abused
this system more than Microsoft.
And let me just give you a couple of statistics on this.
Microsoft laid off last year 6,000, 6,000 American workers.
At the same time, the company benefited from 6,300 H-1B visas
and almost 3,000 green cards.
In other words, if you do the math,
for every worker that Microsoft laid off, they replaced
that worker with one and a half foreign indentured servants.
Now, that is a scandalous system that we've allowed
in this country for far too long.
But thanks to the work of this task force
and thanks to the empowerment of the president, United States,
we're going to stop because thanks to an ongoing investigation,
we have decided to suspend the perm program for Microsoft,
which means they will no longer be able to apply there.
They'll no longer be able to take those H-1Bs and apply
for permanent resident status within the United States of America.
Now, our message to Microsoft and to any other foreign
or domestic corporation is quite simple.
We obviously want you to thrive in the United States of America.
We want people to invest in the United States of America,
but we want you to employ American
workers. And so our message to Microsoft is you're
a great American company, but you've got to hire
great American workers.
Microsoft laid off about 6,000 Americans last year. Very sad,
very difficult decision.
And then the same year, it brought in about 6,300 H-1B workers,
plus nearly 3,000 green cards.
That's like one and a half foreign workers for every American
escorted out with a cardboard box. J.D. Vance's word for it?
Indentured servants. Bill Gates is
rebooting his whole world view right now.
Hope he saved his work. Oh, and Microsoft didn't suffer
alone. The Department of Labor, they brought friends.
Adobe. Then the outsourcing giants,
Cognizant, Infosys, Tata, Wipro, HCL, Capgemini.
Since 2009, these companies asked for almost 3
million foreign workers. Three million.
Now, this is not a talent shortage. This is a subscription
service, okay? Oh, and the Labor Department's inspector general,
they're running criminal
investigations. Bring your popcorn.
Now, in Silicon Valley, a $900 an hour lobbyist just
dropped his oat milk latte on a Tesla.
Now, picture an American engineer, real degree,
real student loans, a year of resumes vanishing into the void.
If this sticks, that phone finally
starts ringing. And it's not about his car warranty.
So why did your evening news give
this about 30 seconds at the most?
Somewhere between the weather and a dog on a skateboard?
Well, guys, we got the whole story here.
The fraud machine, the talent shortage,
costume, and exactly who's next.
So if you're new here, go ahead and hit subscribe. It's
totally free. No visa required.
We called this a scam back when that got you labeled
a conspiracy theorist. Microsoft's PR department,
they will not be subscribing, I'm pretty sure.
Now, real quick, if you or someone you love is on Medicare turning 65,
Chapter offers free Medicare
help. I actually left their phone number down below.
Give my friends a call right now. The
average senior is saving about $1,100 a year.
Their phone number is 909-563-8279. Now, if this
makes your day, smash the like button on the way out.
Big tech hates that button, probably. Now,
for months, guys, you heard it everywhere.
Trump is just like the rest of them. He sold out American
workers. Big tech owns Trump now. Podcast said it.
Pundit said it. You know that one cousin at
Thanksgiving? He said it twice. With gravy on his chin.
He didn't even know it was there.
Oh, and look guys, some of that frustration was real.
People voted for change. They wanted to
see it. But here's what I just cannot get past.
If this administration has done nothing, nothing
at all, then why are the same critics so furious all the time?
Like, why all the meltdowns? You
don't scream at the guy who's asleep on the couch.
You scream at the guy who just moved all your
furniture. So let that settle in.
The Trump administration took aim at Microsoft suspending
the company from using a program allowing them
to apply for green cards for workers using H-1B
visas. Those visas are meant for highly skilled foreign tech workers,
typically working tech
engineering jobs, which can be difficult to fill
in the U.S. The Trump administration claims the
program is rife with fraud.
Our Maryland colleague visited the Microsoft campus in Redmond to find
out what this might look like.
Microsoft will still be able to hire workers on this visa,
but as one of our experts puts it,
it puts them at a competitive disadvantage when it comes to
recruiting those foreign workers
who might be interested in staying in the U.S. long term.
You cannot lay off American workers
and then replace them with foreign indentured servants.
Microsoft disputing claims by the vice president.
They brought in thousands of new foreign workers
to replace Americans at a lower rate.
J.D. Vance going as far as accusing the company of fraud.
Microsoft laid off last year 6,000, 6,000 American workers.
At the same time, the company benefited from 6,300 H-1B visas.
In a statement, the company says a majority
of their employees in the U.S. are Americans
and that 80% of their H-1B visa applications last fiscal year
were for existing Microsoft employees,
adding they pay those workers the same as others doing similar work.
So you can draw on local talent for sure for much of it,
but you also need super specialized additional help along the way.
Mark Muro is a senior fellow at Brookings Metro,
a nonpartisan research and policy org.
If the U.S. is looking to make it more difficult
to recruit global talent, what could
the long-term consequences look like for American tech companies?
It stands to reason that any constraints on talent could
be very troublesome for the industry as a whole.
I would hazard to say no place has benefited more
from this than Seattle.
Really, Seattle and Silicon Valley.
Microsoft ranked fifth for the most H-1B visas this fiscal year.
Seattle-based Amazon had the most.
Ultimately, the local economies that lose
these people will become a bit poorer.
The growth will slow down.
Giovanni Perry is an economics professor at UC Davis
who focuses on the impact of international migration.
I want to dispel is this idea that there
is a fixed number of jobs. And if you give them to
the foreigner, the native will not have them.
That's not how the economy works. Jobs are
created by firm. If the firm can grow
because they can hire smart people who produce new idea,
they can hire more. This is not the first time
that the president has taken aim at this particular
visa program. The president is also currently trying
to raise its price. Now think about the
American worker who did everything right.
They got the degree, they paid the loans, they applied for
like 200 jobs. They heard back from four out of 200.
Two of them jobs that they heard back from
were scams. One was a pyramid scheme selling some vitamins.
The other one wanted you to sell some
knives. That person was told, be more competitive.
Now, the Trump administration is telling big tech
the exact same thing. Here is what changed, guys.
Big tech, they have a whole PR team that's telling
you what this actually means. You have us.
So join the Ron Yates Report newsletter, guys. It's
totally free. When a move like this shakes up hiring,
we're going to tell you exactly which
industries are opening doors,
which companies are under the microscope, and what it could mean for
your paycheck or for your kid's first job.
So look, no yacht required. I'll leave a link for
you in the description down below to get the newsletter.
So picture the room, right? You got
a podium, a row of very serious faces from the federal H-1B task force
and JD Vance stepping up
like a guy who's completely done asking nicely.
Now picture who he's taking on, Microsoft and
friends. Not some corner store, not a startup in somebody's garage.
These are the most powerful
companies in human history.
They run the software behind your bank, behind your news, your phone,
your kid's homework, probably even your toaster by now.
Yeah, why does the toaster even need
software or even Wi-Fi access is beyond me.
Now, for 30 years, politicians walked in the
rooms just like this and they blinked every single time.
Republicans blinked, Democrats blinked,
their donors smiled. But this time, no blink, no blinky blinky.
And if you somehow missed the
whole thing, that's not your fault, folks.
Big networks covered it like a lost cat flyer. Brief,
sad, easy to miss. It's funny how that works, right?
So when a CEO gets a bonus, it's breaking
news. But when the American worker finally gets a win, crickets.
Well, we're not crickets. Let's
open the books. This administration knows
that American workers are the best and brightest in
the world. These jobs that were stolen from them should have gone
and will now go to Americans
first, not foreigners and especially not foreign fraudsters.
And today, thanks to President Trump,
Vice President and the task force,
we are cutting off the head of the snake.
The companies that have enabled this abuse
for decades due to ongoing criminal investigations
led by the Department of Labor's Inspector
General Anthony D'Esposito, who will get into
this shortly. I am hereby suspending
from the Permanent Labor Certification Program some of
the largest IT outsourcing firms in the world,
Cognizant, Infosys, Tata, Wipro, HCL, and Capgemini.
And also due to multiple active federal investigations,
the Department of Labor
is suspending Microsoft and Adobe from the program.
So what does this mean? We will not
accept any new or process any pending permanent
labor certification applications involving these
companies. Since 2009, just
these companies alone have requested almost 3 million foreign workers.
They've received over 230,000 H-1B visas approvals
and over 100,000 permanent labor
certifications. That's hundreds of thousands
of jobs that were taken from American workers.
Our historic action is the first critical step to stop the fraud
and the abuse and ensure that
these programs never come at the expense of the American worker.
Under President Trump's
leadership and thanks to Vice President Vance
and this task force, we are ending the fraud
that has fueled reliance on foreign labor.
President Trump's Department of Labor will
ensure that American businesses now look first
to the most talented workforce in the world,
and that's the American worker we have decided
to suspend the PERM program for Microsoft which
means they will no longer be able to apply uh they're
those they'll no longer be able to take
those H-1Bs and apply for permanent resident status within
the United States of America
so our message to Microsoft is you're a great American company
but you've got to hire great
American workers you cannot lay off American workers
and then replace them with foreign
indentured servants. Now,
there are nine universities in particular that we believe
merit an investigation.
Those universities are Harvard, Yale, Stanford, Brown, the University
of Pittsburgh, UC Davis, Caltech, Arizona State, and MIT.
We actually want these companies to
change their behavior, improve their behavior,
and actually get better. That's the goal here.
We're not just punishing them to punish them.
We're punishing them because we want them to
change their behavior. So let's go ahead
and do the Microsoft math, shall we? Kind of like a
6th grade word problem.
So Microsoft lets go of 6,000 American workers. Same year it brings in
6,300 H-1B workers. Then nearly 3,000 green cards on top.
Question, was there a worker shortage?
Show your work. We gotta show your work now.
This is roughly one and a half foreign workers
for every American let go.
Now, I don't know how you hire half a person, but I'm pretty sure
Microsoft's lawyers found a way to do it.
Even the Xbox side of the game got hit with the layoffs.
So the company that sells
your kid's game over screens handed a few to its own staff.
J.D. Vance, he had a name for the setup.
Indentured servants.
Workers tied to the boss by a visa.
Quit and you might be packing for home.
Oh, and Bill Gates, yeah, the man
who wants to fix the planet's weather and what you
eat for lunch.
Somehow he never noticed this.
Maybe it was on his other computer.
Will anybody at the top ever answer for it?
Now, somebody you know just got a rejection email that said,
we've decided to go another
direction.
go ahead and send them this video right now.
Right now, guys. Now they're going to know
exactly which direction. Hit share. I'll wait for you.
If you do the math, for every worker
that Microsoft laid off, they replaced that worker with one
and a half foreign indentured servants.
Vice President J.D. Vance is taking aim
at some of America's biggest tech companies.
On Thursday, he announced
the Trump administration is suspending Microsoft,
Adobe, and other software companies
from the Permanent Labor Certification Program.
a process employers use to sponsor foreign workers for green cards.
Alongside members of its fraud task force,
Vance accused Microsoft of cutting American jobs
while relying on the H-1B visa program.
Microsoft laid off last year 6,000, 6,000 American workers.
At the same time, the company benefited from 6,300 H-1B visas
and almost 3,000 green cards.
PERM allows employers to move H-1B workers toward permanent residency.
To use the program, a company must certify
that no qualified American worker was available for the job.
Labor Secretary Keith Sonderling said because of the alleged fraud,
his department will no longer accept or process applications involving
those companies as officials continue to investigate.
The Department of Labor is suspending Microsoft
and Adobe from the program.
So what does this mean?
We will not accept any new or process any pending permanent
labor certification applications involving these companies.
The suspension also covers other software companies
and several outsourcing firms, including Cognizant.
The vice president said the alleged fraud lies
in the certifications companies make when they apply,
including claims that foreign hires have
skills American workers can't provide.
Vance also downplayed any tension when asked about President Trump's
decision to honor Microsoft's CEO with a top national technology medal.
So we're going to continue to support Microsoft
and have a great relationship with Microsoft,
but we're also going to deny them the ability to apply
for these permanent residencies until they show that they're going
to get serious about putting American workers first.
The vice president adding
that the action could extend to other tech companies.
The suspension of PERM is going to last as long as it needs to.
We have a number of tools to suspend it indefinitely,
but we actually want these
companies to change their behavior, improve their behavior,
and actually get better. That's the goal
here. We're not just punishing them to punish them.
We're punishing them because we want them
to change their behavior.
This comes as White House officials continue to urge Congress to
take up H-1B reform. So what did Washington actually do?
Think chutes and ladders. You see,
an H-1B visa gets a worker in the door,
but the grand prize is a green card, permanent residency.
To get there, companies use something called PERM.
Think of it as the ladder from temporary
to permanent. That ladder was the carrot.
Work hard, work cheap, slave away, never complain,
and maybe, maybe the boss helps you climb.
Well, the Department of Labor just sent Microsoft down
the chute. No new applications. No pending ones processed.
Why? Ongoing criminal investigations
led by the Labor Department's Inspector General Anthony Desposito.
Criminal. Not a misunderstanding.
not a paperwork hiccup, criminal. Under President Donald Trump and
Vice President J.D. Vance,
fraud is no longer being dismissed as an accounting error.
Fraud is a crime. Fraud steals American jobs.
Fraud fuels violence. Fraud threatens our national
security. President Trump
and Vice President Vance understand that protecting America means
standing behind the men and women who wear the uniform,
giving them the resources to do their
jobs and letting cops be cops.
I am announcing a historic investigation into the J-1 visa fraud
involving nine major American universities.
Pitt, Yale, Harvard, Stanford Brown, UC Davis, Caltech,
Arizona State, and MIT. Subpoenas have been served,
investigations are underway, and nobody will be
getting a free pass because their name is carved
into an expensive building oh and without the
carrot the whole model wobbles why would anybody accept less pay
and 60-hour work weeks if the
green card isn't waiting at the end now imagine silicon valley
this week emergency meetings
lawyers billing by the minute somebody
in a hoodie googling what is accountability panic
looks really good on them now microsoft didn't take
the fall alone in fact misery loves company
and the Department of Labor brought a guest list.
Cognizant, Infosys, Tata, Wipro, HCL,
Capgemini. Sounds like a law firm.
It's actually six of the biggest outsourcing companies on earth,
most of them based in India. Their whole business?
Renting workers to American companies.
Cheaper, faster, no complaining. Oh, and then Adobe.
Yes, the Photoshop people, right? Of course,
there's Adobe Premiere. We can't forget about them either.
Suspended over federal investigations.
Turns out you can't Photoshop your way out of this one.
Same rules for all of them. No new
applications, no pending ones being processed, done.
So now, here's how these firms usually work.
They show up, smile, promise efficiency.
A few months later, a whole IT department,
100 people, sometimes more, just disappears.
Badges stop working, desks go quiet, parking
lot gets a little emptier. The company calls it restructuring.
So imagine the phone calls that
morning. Sir, the labor department's on line one.
Tell them I'm in a meeting. Sir, they are the
meeting. Efficiency actually delivered. How's that?
Now, let's zoom out for a second, right?
Since 2009, these companies,
they asked for almost 3 million foreign workers. 3 million. They got
more than 230,000 H-1B approvals
and more than 100,000 permanent labor certifications. A big
old NFL stadium holds about 70,000 people.
Now, if you fill it with H-1B approvals, then do it again
and again, you'd still have thousands waiting in the parking lot.
Oh, and the American fans,
they're stuck outside. They don't even get a ticket.
So this goes back to the 90s. Big tech
was importing workers while locals living right next
to the company headquarters could not get
hired. So picture an IT pro making six figures in the early 2000s.
By 2006, he's getting replaced.
And of course, they're telling him to train his replacement.
By 2008, he's taking jobs for way
less money. He's fixing the mess that the cheaper workers left behind.
This did not start last week,
folks. It started around your dad's first job.
And so now the Department of Labor says companies
must look for American workers first.
What a radical idea. Since President Trump launched the
fraud task force and put the vice president in charge,
our worst nightmares about the fraud that
had been taking place in this country were exceeded.
Fraud that has been going on for years,
decades in some cases generations
and yet in case after case after case we see individuals that are
being brought into the country for skills
that are not specialized that are not unique and that
are not skilled that are doing work
that is currently being done by american workers but
vastly lower pay if you go back a few decades
in this country this was an issue that was covered
commonly by our media in fact there's
a famous special that was done by mike wallace at cbs
probably almost 30 years ago now,
when this program was first starting, documenting and
detailing these abuses. If you remember in 2015,
when President Trump first campaigned for president,
he had at his rallies American workers
in good-paying middle-class jobs with pensions
who were laid off and forced to train
their foreign replacements as the condition of their
severance. But what President Trump has done to fix
and reform the immigration system more broadly
is equally as astonishing and impressive.
He completely fixed and repaired the refugee program
that has managed to turn an immigration system
from being against its people to for its people.
And in particular, in the Western world,
where this has been simmering for a long time,
President Trump is the only Western leader
to deliver for the citizens of this country
an immigration system that puts them first.
No other Western leader has done this.
President Trump stands alone. Now,
you guys remember where we started, right? They said
Trump sold you out. They said nothing would happen.
Well, something did happen. J.D. Vance
and the Department of Labor,
they stood at that podium and they named names. Microsoft, Adobe,
Tata, Infosys, the Trump administration,
they didn't send a letter. They just shut a door.
And the world noticed.
People in Ireland, Scotland, the UK, and Australia, they're asking
why their own leaders won't do this.
Now, imagine being jealous of Washington, right?
Now, think about the people this was really for.
The computer science grad that's fixing machines
instead of writing code, the 30-year veteran shown the door,
the developer locked out of
his own field for three years, told to keep learning,
get another certification. To every
one of them, it wasn't you guys. It never was you.
The game was rigged. Somebody finally kicked the
table. So you tell me, which company should be next?
Drop it in the comments down below.
And if this made your day, hit the like button on the way out.
Microsoft has a team of lawyers
looking for loopholes right now. You can bet on it.
Now, and of course, when they find one,
you'll want to know before your next job interview,
not after that. This is what the
Ron Yates Report newsletters for, who got caught,
who's next, and what it means for your jobs in
your town. It's free, takes one second to sign up,
faster than a fake recruiter calling you back.
Links in the description down below.