BUSINESS

Katherine Heigl is selling her longtime Utah retreat 14 years after she left the Hollywood spotlight to enjoy a quieter life with her family at the extraordinary mountain home.

Microsoft’s (MSFT) latest restructuring just sent a painful message to employees and investors at the same time.The company is tightening its workforce again as it looks to manage weaker pockets of the business while keeping its massive AI push on track. The timing couldn’t have been more difficult. Microsoft shares have lagged other megacap tech names this year, and Wall Street is still searching for clearer evidence that the promised AI gains come to fruition in a big way.For perspective, according to Seeking Alpha data, Microsoft stock has been under major duress, falling 13.2% over the past month, 20% over six months, and 21% year to date.In contrast, the S&P 500is up 10% YTD, underscoring that Microsoft’s recent weakness has been far steeper than the broader market.That said, the big move comes inside Xbox, where Microsoft is preparing a deeper reset after years of acquisitions, studio expansion and uneven growth.What Microsoft is cutting now After a couple of weeks of swirling rumors, Microsoft is moving through another major workforce reset as pressure builds across its Xbox gaming division. According to a CNBC report, Microsoft is slashing 4,800 jobs immediately, equal to about 2.1% of its workforce.The cuts follow the company’s April voluntary retirement program, targeting U.S. employees at the senior director level and below. CNBC reported that more than one-third of eligible employees accepted the offer, and Microsoft could explore similar programs in the future.Perhaps the bigger signal is that this isn’t just a one-day layoff. Xbox CEO Asha Sharma told employees that Microsoft’s gaming division will cut 3,200 people through fiscal 2027, with 1,600 jobs eliminated Monday and another 1,600 exits coming on top of the companywide total.Related: Microsoft may be done making Xbox cheap“I recognize that a year-long restructuring creates additional challenges,” Sharma wrote. “Unfortunately, it is not possible to make all the necessary changes in a single day.”She also told employees, “We will return to growth in 2027.”The move was framed as part of a broader transformation instead of a simple belt-tightening measure. Amy Coleman, the company’s chief people officer, wrote that “the way technology is built, deployed, and used is transforming faster than at any point in my time here.”So effectively, Microsoft is reshaping the entire structure of its gaming portfolio.Compulsion Games and Double Fine Productions will become independent again, while Ninja Theory and Undead Labs have entered terms to join new ownership. Arkane Studios, which came to Microsoft through its $8.1 billion ZeniMax Media acquisition, is also exploring strategic options with its works council. At the same time, Microsoft is trying to adapt to a faster AI cycle, protect margins and refocus businesses where growth has become harder to sustain.

Microsoft is cutting jobs as Xbox faces a deeper restructuring effort.Chona Kasinger/Bloomberg via Getty Images

AI is turning layoffs into a Big Tech themeMicrosoft’s cuts didn’t just happen in isolation, as we’ve seen a wave of layoffs spread across Big Tech, with businesses cutting headcounts and redirecting capex to AI endeavours.Oracle: On June 22, 2026, Reuters reported Oracle’s workforce tanked by 21,000, or 13%, in fiscal 2026, partly led by AI adoption.Microsoft: On July 2, 2025, Microsoft said it might cut nearly 4% of staff while continuing heavy AI infrastructure spending, according to Yahoo Finance.Meta Platforms: On May 18, 2026, Reuters reported Meta’s May 20 restructuring included 10% layoffs, 7,000 staff shifted to AI initiatives, and 6,000 open roles closed.Salesforce: On Feb. 10, 2026, Reuters said that Salesforce cut fewer than 1,000 jobs, including jobs linked to its Agentforce AI push.Amazon: On Jan. 28, 2026, Reuters said Amazon confirmed 16,000 corporate cuts, which includes 14,000 October layoffs partly linked to AI adoption and bureaucracy reduction.Microsoft’s AI math is getting harder to defend The other side of the argument is that Microsoft is still spending aggressively on building out an AI future which continues at the expense of its employees.The numbers are huge. According to Reuters, Microsoft’s capex numbers shot up 49% year over year to $31.9 billion in its fiscal Q3, down from $37.5 billion in the prior quarter but still below Wall Street’s $34.9 billion estimate. However, that supposed breather isn’t expected to last for long. The CFO Amy Hood told analysts Microsoft expects about $40 billion in capital spending in the fiscal Q4, including $5 billion tied to higher chip prices, Reuters reported.More Wall Street:Wall Street has a new problem, and it’s not the technologyWall Street’s biggest banks just landed the AI IPO of the yearWall Street’s top analysts just doubled down on 3 stocksNevertheless, Microsoft has been dishing out strong growth numbers to defend that spending. In its fiscal Q3, CEO Satya Nadella said Microsoft Cloud revenue topped $54 billion, up 29%, while the company’s AI business surpassed a $37 billion annual revenue run rate, up 123%. Microsoft also said Azure and other cloud services grew 40%, but customer demand still exceeded available capacity.Moreover, at Morgan Stanley’s TMT conference, Nadella argued AI capex can produce strong returns because Microsoft can use software to improve utilization, lower total cost of ownership and optimize workloads. He said those levers could “generate great ROIC” and compared today’s AI buildout to the early Azure investment cycle, when Microsoft “kept building” before cloud margins became clear.Nevertheless, the skepticism is real. According to S&P Global Market Intelligence, hyperscaler capex expectations for 2026 have jumped by almost $250 billion, from $379 billion to $622 billion, and the spending is projected to grow faster than sales. That’s why Microsoft’s job cuts matter a ton because it’s trying to convince investors that the AI buildout deserves more patience, even as older businesses are forced to shrink.Related: ‘Big Short’ investor Michael Burry issues blunt 4-word warning on AI stocks

MONSTA X’s Kihyun released his EP, ‘BORDERLINE,’ showcasing a mature and fresh outlook on life and the future. He doesn’t know where he’s going but he knows who he is.

TheStreet aims to feature only the best products and services. If you buy something via one of our links, we may earn a commission.Why we love this dealHaving the right headphones for your lifestyle can make all the difference. Earbuds that offer long playtime, active noise-canceling, and easy connections can make life more pleasant. Whether you’re commuting to work, going to the gym, blocking out apartment noises, or just want to relax and listen to your favorite audiobook, you want something that’s going to be able to do it all while without worrying about a dead battery or uncomfortable fit. The Soundcore Anker Noise-Canceling Bluetooth Earbuds offer the whole package, and with over 26,000 five-star ratings, you can’t go wrong. Shoppers can save 30% at Amazon, scoring these earphones on sale for just $28.Soundcore Anker Noise-Canceling Earbuds, $28 (was $40) at Amazon

Courtesy of Amazon

Shop at AmazonWhy do shoppers love it?These earphones offer up to 45 hours of playback time, thanks to the included charging case that also doubles as a phone stand when watching YouTube or movies on your phone. Without the charging case, these headphones can last up to 10 hours on normal mode or up to six hours on noise cancellation mode. The charging case can be charged while the headphones are in use, offering two hours of playback time with just a 10-minute charge, allowing you to never be without battery. The active noise-canceling mode allows you to block out surrounding sound, like traffic during a walk, people talking while studying at the local cafe, or the noise of the train during your commute. The 10-millimeter drivers are amplified by Soundcore’s exclusive BassUp technology, offering a captivating and reliable sound experience. Related: Walmart’s $180 noise-canceling earbuds with a convenient sleep mode are now 86% offThese earbuds feature four built-in microphones to allow hands-free phone calls from anywhere. The AI-enhanced calls pick up your voice instead of background noise, allowing others to hear you more clearly over the phone. The earphones feature Bluetooth 5.4 technology that pairs quickly with your devices and can automatically pair with the last device that was connected. The case and headphones are smaller, offering a more convenient option to carry around, and a more comfortable fit in the ear. The high-comfort and water-resistant features also make them great for the gym, preventing damage during sweaty workouts and staying in place. The pros and cons of this dealProsActive noise-canceling design: They can block out surrounding sound, such as traffic or background talking, to allow you to focus on your music and activities. Long playback time: These headphones have a playback time of up to 45 hours when combined with the charging case.Quick charge times: They offer up to two hours of playback time on one single 10-minute charge.The phone stand is convenient: Whether you need a break from studying or want to watch some videos while having your morning cup of coffee, the included phone stand pulls out to offer convenient viewing without having to hold your phone.Cons No hanging loop: The case does not have any sort of loop to connect to your bag or your pants while in your pocket. “So far, I really love the earbuds,” said one reviewer. “From the first look, the case is very small and it can fit perfectly in my pocket or a small purse. The design is very compact and I love that. It has a phone stand on the bottom of the case that pops out. Not only that, but I think the color is very cute.”Another shopper said, “I bought these to replace Pixel Buds Pro and I’m astounded at the quality you get for the price. They connect quickly to the phone, have great noise cancellation and a decent microphone for calls. They fit comfortably and securely in my ear.”Shop more dealsTozo T6 Wireless Earbuds, $20 (was $30) at AmazonTozo NC20 Pro Active Noise Canceling Earbuds, $60 (was $80) at AmazonSoundcore Anker P31i Hi-Res Earbuds, $37 (was $60) at AmazonWhether you need to cancel out some loud noises during the day or want some bass-boosted, long-lasting headphones for the long day ahead, the Soundcore Anker Noise-Canceling Bluetooth Earbuds are a great choice. At just $28, these headphones are a steal.

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Global artist and member of NCT and WayV, TEN, has co-founded ILLIMINT, a new artist-centric global creative company and label focused on artists individuality.

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NATO agreed a 5% spending target but not a common threat. Lithuania, Spain and Turkey are arming for three different wars. What it means for defense capital.