'80% workforce locally hired': Wipro sees no material business impact from US suspension of PERM applications
Wipro does not expect any material business impact from the US Department of Labor's suspension of new applications under the Permanent Labor Certification (PERM) programme for certain companies, the IT services company said in a filing on Tuesday.
The company said the announcement concerns a specific pathway to permanent residency in the US and is distinct from broader skilled talent mobility programmes, such as the H-1B visa.
"Over the years, Wipro has pursued a deliberate localisation strategy in the US, with more than 80% of our workforce in the country locally hired," Wipro said.
It also reaffirmed its commitment to investing in local talent, complying with applicable US laws and regulations, and ensuring business continuity for its clients.
Wipro's statement came after the Donald Trump-led US administration on October 8 suspended the PERM programme for certain IT companies including Microsoft, TCS, Infosys, Wipro and Cognizant among others.
The suspension bars the affected companies from submitting new PERM applications and stops the processing of pending applications, according to reports.
The administration has accused the companies of replacing US workers with foreign employees by abusing the system.
The Permanent Labour Certification programme, known as PERM, is a process run by the US Department of Labor that allows companies to sponsor foreign employees for US green cards, which grant permanent residency.
Introduced in 2005, the programme requires employers to show that they could not find enough qualified American workers for a particular job. They must also prove that hiring a foreign worker will not reduce the wages or worsen the working conditions of American employees in similar roles.
The process is started by the employer, not the employee. Once the labour certification is approved, the company can move to the next step of the green card application process, subject to the applicable requirements.
The move is a wider crackdown by the Trump administration on skilled foreign labour. It came after the administration imposed higher fees on certain H-1B visa petitions.
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