The U.S. Department of Labor, on Thursday, announced a blanket suspension of the Permanent Labor Certification (PERM) program for a slate of IT giants, including Tata Consultancy Services (TCS). According to the latest DOL filing, TCS had already seen 104,028 PERM certifications between Oct 1, 2025, and Jun 30, 2026, with 52 withdrawals—numbers that underscore the scale of the companies’ U.S. hiring drive. The move means no new or pending PERM applications for TCS will be processed until the suspension is lifted.
Microsoft and Adobe are not far behind, with 1,600 and 182 certifications respectively, while HCL Technologies logged 59 and Capgemini 44. Infosys, Wipro, and Cognizant reported no certifications under their principal entities, though their subsidiaries recorded smaller activity—8, 6, and 6 respectively. The disparity highlights how the U.S. government is targeting firms that rely heavily on U.S. green‑card pipelines.
PERM is the first hurdle in converting a temporary H‑1B worker into a permanent resident. The suspension does not cancel existing H‑1B visas, so employees can still work, but the green‑card timeline will suffer. HR teams will need to keep their talent pipelines in view, as delays could pressure retention strategies.
Market watchers note that the suspension could ripple through the Indian IT sector, which already wrestles with long green‑card wait times. Analysts warn that companies might turn to alternative sponsorship routes or invest more in domestic talent pools. The immediate market reaction was a modest dip in TCS shares, reflecting investor concern about future talent costs.
Looking ahead, the companies will need to adjust their workforce plans while awaiting the Department of Labor’s next decision. Investors should keep an eye on the next earnings releases, as the regulatory climate may drive new guidance on hiring and capital allocation.