Smith’s warning arrived less than a week after Vice President Jake R. Vance declared the Trump administration would bar Microsoft and seven other firms from sponsoring green cards for skilled foreign workers.
Vance had earlier accused Microsoft of abusing the H‑1B visa program, a charge the company dismissed as "completely off base."
The U.S. tech sector has long leaned on highly skilled immigrants. Smith pointed out that Microsoft hired more than 9,000 U.S.-born workers last year, a contribution that the administration’s criticism seemed to ignore.
He also countered claims of pay disparity, insisting that Microsoft uses the same compensation system for all employees regardless of immigration status.
Smith warned that restricting permanent residency could "cripple" the tech industry for over a generation, implying that the policy may lead to a talent drain.
The White House and Microsoft have yet to respond, leaving the ban’s future uncertain.