Fox News AI Newsletter: Microsoft cuts thousands of jobs

Welcome to Fox News’ Artificial Intelligence newsletter with the latest AI technology advancements. IN TODAY’S NEWSLETTER: – Microsoft cuts 4,800 positions, insists jobs ‘not being replaced by AI’ – OpenAI…

OpenAI says GPT 5.6 is the ‘preferred model’ for Microsoft Copilot 365 amid breakup chatter

OpenAI’s new family of models will continue to power Microsoft’s suite of workplace and productivity apps.

If Microsoft sold off Xbox, who would even buy it?

This week, Microsoft took a huge ax to its Xbox business. The company announced that it would be laying off 1,600 workers now, 1,600 more over the next fiscal year,…

Microsoft joins AI cost-cutting trend by relying more on its own models

Microsoft is the latest Silicon Valley giant to cut back on its AI spending.

Bethesda, id Software reportedly hit hard by Microsoft layoffs

In announcing plans for 3,200 layoffs across the Xbox division yesterday, CEO Asha Sharma focused on discussing cuts to the Xbox platform team and redundant layers of middle management. Now,…

Microsoft fixes storage-hogging Windows 11 folder

Microsoft is addressing a Windows 11 bug that caused a folder to take up several gigabytes of storage space. As spotted earlier by Windows Latest, Microsoft included the patch in…

Microsoft lays off nearly 5,000 employees across Xbox, commercial sales

Microsoft cut around 4,800 roles, or 2.1% of its global workforce, on Monday — the latest in a series of layoffs that’s stoking fears of AI replacing jobs. The layoffs will…

Microsoft is laying off 4,800 employees

Satya Nadella in February 2026. | Photo by Sven Hoppe / picture alliance via Getty Images A year after cutting around 9,100 employees, Microsoft is making further layoffs today as…

Microsoft is selling off four Xbox studios as part of significant gaming cuts

Xbox CEO Asha Sharma at the Bloomberg Tech conference in June 2026. | Bloomberg via Getty Images Microsoft is laying off 4,800 employees today, and more than 30 percent of…