US Suspends Microsoft and IT Firms From Green Card Sponsorship: What It Means for Tech Mobility Planning in Romania

On 8 October 2026, the US administration suspended Microsoft, Adobe and six IT services companies, Cognizant, Infosys, Tata Consultancy Services, Wipro, HCL Technologies and Capgemini, from the Permanent Labor Certification Program, known as PERM. Labor Secretary Keith Sonderling said the Department of Labor would not accept any new, or process any pending, permanent labour certification applications involving these companies. Vice President JD Vance said the suspensions are indefinite and will last until the administration considers its concerns addressed.

PERM is the step that allows a US employer to sponsor a foreign worker, typically someone already working in the US on an H-1B or intracompany transfer visa, for permanent residence. It is not the H-1B visa itself. But for many technology employers it is the main retention tool: the route that turns a temporary assignment into a long-term career in the US.

For European employers, the announcement matters for two reasons. Many run transatlantic teams that rely on US sponsorship pathways. And every tightening of the US route pushes companies to look at where else their engineering capacity can sit. Romania, with a dedicated highly skilled worker route under GEO 32/2026, is one of the locations being reassessed.

What exactly was suspended

The measure targets permanent residence sponsorship, not temporary work visas. In practical terms:

• the named companies cannot file new PERM labour certification applications
• pending applications involving those companies will not be processed
• H-1B issuance itself was not suspended by this announcement
• the suspension is indefinite and linked to multiple federal investigations into use of the PERM system

The administration framed the move as a response to alleged abuse, citing Microsoft's layoffs alongside its use of H-1B visas and green cards. Microsoft disputed the characterisation, stating that 80 percent of its visa filings were to extend or change the status of existing employees. The same day, officials announced investigations into J-1 exchange visitor use at nine US universities.

The PERM suspension sits on top of earlier measures, including a USD 100,000 fee on most new H-1B petitions that the administration is moving to formalise, and changes to the H-1B lottery that favour higher salaries.

Why this reaches beyond the named companies

Only eight companies are named, but the signal is broader. Employers of every size now face a US system where sponsorship can be paused at company level, investigations can freeze pending cases, and the cost of each new temporary hire has risen sharply.

For an international group with engineers in Europe and the US, that changes the planning assumptions:

• a US assignment can no longer be presented to employees as a reliable path to permanent residence
• pending green card cases may stall, leaving employees on time-limited status
• outsourcing and staffing models that depend on placing foreign IT professionals with US clients face higher scrutiny
• headcount plans for US delivery centres carry more immigration risk than they did a year ago

The practical response for many companies is not to abandon the US, but to reduce how much of their technical capacity depends on US immigration outcomes.

The European alternative: building capacity where routes are predictable

When US routes tighten, groups typically look at three options: keeping affected employees in their current location, relocating them to another office, or building new capacity in a jurisdiction with clearer rules. EU locations are attractive because a single permit gives access to an established legal framework, and the EU Blue Card offers a mobility path across Member States.

Romania already hosts significant IT delivery operations for multinational groups, and its 2026 reform makes the highly skilled route more distinct. Under GEO 32/2026, published in the Official Gazette No. 335 on 27 April 2026, work visas are split into two tracks:

• D/AM1 for highly skilled workers, including EU Blue Card candidates, handled through registration and not subject to the national quota
• D/AM2 for permanent, seasonal and cross-border workers, subject to a national quota of 90,000 and full ANOFM authorisation

For software engineers, data specialists and technical leads, the D/AM1 route is the relevant one. All non-EU hiring now runs through the WorkinRomania.gov.ro platform, which is integrated into hub.mai.gov.

What a relocation to Romania involves

Moving an engineer who cannot stay in the US, or hiring a non-EU specialist directly into Romania, is a structured process. Employers should plan for:

• confirming eligibility for the highly skilled route, including qualifications and the applicable salary threshold, which should be checked against current IGI guidance at the time of filing
• registering the employer and the role on WorkinRomania.gov.ro
• preparing the employment contract using the mandatory bilingual templates introduced by Order 655/2026
• obtaining the long-stay D/AM1 visa, then the residence permit after arrival
• registering the contract with ITM and setting up Romanian payroll and social security from the first day of work
• planning for family members, schooling and housing where the employee relocates with dependants

Companies without a Romanian entity can still act quickly through an Employer of Record arrangement, which allows the individual to be employed and sponsored locally while the group decides whether to establish its own presence.

Planning steps for HR and mobility teams now

The US situation is still moving, and further investigations have been announced. Rather than waiting, mobility teams can take a few concrete steps:

• map which employees are on US temporary visas with pending or planned PERM cases, and which entities sponsor them
• identify roles that could be performed from an EU hub if a US case stalls
• check whether affected employees would qualify for the highly skilled route in Romania or another EU Member State
• review contract terms, notice periods and tax residency implications of a transfer before it becomes urgent
• prepare a standard relocation package so a move can be executed in weeks rather than months

How Nestlers Group Supports Tech Talent Relocation to Romania

Nestlers Group's Work Permit and Visa Support team manages D/AM1 applications for highly skilled IT professionals through WorkinRomania.gov.ro, from employer registration and eligibility review through to visa issuance and residence permit collection. Where companies are moving engineers out of uncertain US routes, the team assesses each person's qualifications and salary against the current requirements before anything is filed.

For groups without a Romanian entity, our Employer of Record service allows specialists to be employed legally in Romania from the start, with Nestlers Group acting as the local employer and handling contracts, work authorisation and payroll. Our Payroll and HR Compliance team manages ITM contract registration, bilingual contract preparation under Order 655/2026 and monthly social security filings, while our Relocation and Destination Services team supports housing, schooling and settling-in for employees who relocate with their families.

Sources: US Department of Labor, suspension of PERM labour certification processing for named employers, announcement of 8 October 2026; Government Emergency Ordinance No. 32/2026, Official Gazette of Romania No. 335, 27 April 2026; Order 655/2026 on bilingual employment contract templates.