The Scoop: How Microsoft responded to H-1B visa suspension

Plus: Starbucks addresses Chipotle acquisition rumors; Walmart responds directly to critic.

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Microsoft and several other tech companies are now forbidden from using H-1B visas after the Trump administration claimed fraud.

The visas allow highly skilled workers to enter the United States.

Vice President JD Vance said that Microsoft circumvents rules that require companies to first advertise jobs in the United States before importing talent from abroad.

“They’ll put an advertisement in a small-town newspaper. They’ll go out there and say that ‘We have advertised for a position with our company, and nobody is responding to it,’” Vance said. “And they will use that lack of response to then go and replace American workers with what is effectively foreign indentured servants.”

Microsoft pushed back firmly but politely in a statement posted to its website Thursday.

“We believe in the strength and talent of the American workforce,” the statement begins. “That is why the vast majority of Microsoft employees in the United States are Americans.”

The statement continues to push back against a claim Vance made that American workers were laid off to make room for more H-1B visa recipients, explaining that 80% of visa applications made in the last year were for workers already in the country and that these recipients made up 1% of their workforce.

They also specifically addressed the “indentured servant” claims: “We pay our employees some of the highest compensation in the tech sector, and our wages are among the highest of all H-1B filings. We pay our H-1B employees the same as any other employees doing comparable work.”

In a moment of confusing timing, the strike against Microsoft came just hours before President Donald Trump awarded Microsoft CEO Satya Nadella a medal. Nadella himself was the recipient of an H-1B visa.

 

 

Why it matters: Microsoft’s statement walked an incredibly fine line between pushing back against the allegations while attempting not to further anger a volatile administration.

It has two main focuses: Pushing back against specific claims with their own data while also affirming their investment in the United States and their patriotism. Both are necessary as they make their case both in public and through governmental channels.

In a time when many Americans feel opportunity is declining, explaining how the visas are used and how American workers are prioritized is important. At the same time, there is a gap in how they explain the importance of the H-1B holders and why these workers cannot be sourced in the United States.

This is certainly just the opening salvo in a much longer conversation. But it’s strong without being confrontational. Still, it’s hard to know if that will be enough now.

Starbucks plays coy over Chipotle acquisition rumors

Speculation is swirling that Starbucks could acquire Chipotle in a fast-casual powerhouse deal. The move could give Chipotle a stronger international footprint and change the category amid a time of changing consumer spending. It probably doesn’t hurt that current Starbucks CEO Brian Niccol came from Chipotle.

But the rumors also come at a time when Starbucks is trying to put its own house in order with major changes to its menu, coffeehouses and service.

Which is exactly what Starbucks said in a statement about the rumors.

“Our team is laser-focused on executing our Back to Starbucks strategy,” Starbucks said in a statement provided to NBC News. “We have strong momentum and confidence in our long-term growth potential.”

However, it doesn’t completely quash the notion, noting they don’t typically comment on “rumors and speculation” and putting the focus back on its upcoming earnings report.

That leaves plenty of room for the merger to remain on the table while reassuring investors that Starbucks’ focus is on its own turnaround.

Walmart fires back against pricing critic by name

In an unusual move, Walmart directed a rebuttal of allegations over its pricing strategy directly to a specific critic: Lindsay Owens, CEO of Groundwork Collaborative, a progressive think tank that has accused Walmart of using dynamic pricing to change the cost to the consumer based on their shopping habits, income, perceived willingness to pay and more.

In a letter posted on social media and on its own website, Walmart EVP for corporate affairs Dan Bartlett addressed Owens directly.

“Your recent public statements repeatedly mischaracterize Walmart’s pricing practices and use of technology. They leave audiences believing Walmart uses or is preparing to use customers’ personal information or changes in the weather to charge them more. Your account does not accurately describe our practices or our plans. So, we are asking you to correct the record.”

Bartlett outlines specific claims the company disagrees with and directly asks Owens to correct her reporting. It’s a moment that feels like it could be a prelude to a lawsuit. It does, however, also invite Owens to a conversation.

This was a somewhat risky move that bears the chance of spreading Owens’ accusations farther than ever. But it also allows Walmart to get out its side of the story and rebut specific claims.

However, it doesn’t seem to have worked with Owens: She’s not backing down.

Google expands tool for identifying AI-generated content

As AI-generated imagery becomes more and more convincing, detection tools need to keep pace. Google is rolling out a new tool in this fight by improving its existing Synth ID to better identify a broader range of AI-created images. The new Synth ID Detector is available to anyone and can read invisible watermarks that brand content created with tools from Google, OpenAI, NVIDIA and Kakao. Support for Apple is coming soon.

These are vital tools for communicators to keep in their back pocket. Social media is awash with convincing fakes. Being able to definitively prove what is synthetic and what is real is vital to determining what needs a real-world response and what needs a misinformation response. Keep the tool bookmarked.

Allison Carter is editorial director of PR Daily and Ragan.com. Follow her on LinkedIn.

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