Microsoft is laying off about 4,800 employees, including 1,600 from Xbox, as it restructures around AI investments and tries to reset its struggling gaming business. "Our business is changing because the world around it is changing. The way technology is built, deployed, and used is transforming faster than at any point in my time here," said Amy Coleman, EVP and chief people officer at Microsoft. "Our customers' needs are shifting, the business models that serve them are shifting, and that means the work itself -- what we do, where we focus, and how we're organized -- has to transform too." She continued: "Companies don't get to choose whether their industry changes; they only get to choose whether they change with it. That means we will need to adjust resources and roles and shift how we operate so we can have the greatest impact for our customers." TechCrunch reports: Coleman stressed that the roles being eliminated today "are not being replaced by AI," but noted, "what is true is that AI is changing how work gets done." "Some of the tasks we do every day can now be automated, and that means we all need to keep learning, keep building new skills, and keep adapting as the work evolves," Coleman wrote. [...] Speaking about the Xbox layoffs, Coleman said little: "We are restructuring to position the business for long-term success. Engineering teams across the company will also evolve their structure and priorities to meet customer needs and innovate for the future."
Of today's 4,800 layoffs at Microsoft, 1,600 will hit Xbox, with about 3,200 cuts in total expected through fiscal year 2027, according to Asha Sharma, CEO of Xbox. In an email she sent to employees on Monday, Sharma called this "the most significant restructure in Xbox history." "Our business today is not healthy," Sharma wrote. "We are operating at margins that are 3-10x lower than comparable platform and publishing businesses." She added that Xbox made bets like its monthly subscription service Game Pass, alongside moves to grow its portfolio of content and invest in multi-platform, among other attempts to breathe life into the business. None of those strategies grew at the expected pace, leading to the core business weakening even as Xbox added more teams and investment. "And now the industry is facing the most severe hardware crisis in its history," Sharma said. "We must reset Xbox."
As part of the shift, Microsoft will transition four of its gaming studios to operate under new management, ensuring preservation of intellectual property and ongoing projects. Specifically Compulsion Games and Double Fine Productions will return to independent studios, according to Sharma. Ninja Theory and Undead Labs are coming under new ownership with funding to complete and grow some of their more popular games. According to Sharma's memo, Xbox is also flattening management hard, cutting the current 14 management layers to no more than five, but ideally three. As part of this major organization redesign, Xbox is making longtime executive Helen Chiang chief operating officer with end-to-end profit and loss authority across content, hardware, platform, and services. Xbox's restructuring plan centers around narrowing focus by dropping sprawling creative bets that don't produce platform-scale returns, and instead homing in on core strategic pillars like Mojang and King, the businesses behind Minecraft and Candy Crush.
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Security updates have been issued by AlmaLinux (container-tools:rhel8, grafana, grafana-pcp, kernel, ruby:2.5, and ruby:3.3), Debian (bird3, chromium, kernel, linux-6.1, mediawiki, nginx, openvpn, php-phpseclib, php8.2, php8.4, and sympa), Fedora (7zip, buildah, chromium, clamav, freerdp, leptonica, mariadb10.11, mariadb11.8, nextcloud, nsd, openqa, openvpn, os-autoinst, pdns, pdns-recursor, perl-Crypt-ScryptKDF, podman, python-jupyter-server, and python-streamlink), Mageia (mariadb and yt-dlp), Slackware (libevent, libseccomp, mozilla, mutt, and php82), SUSE (apache2, containerd, dnsmasq, docker, dracut, firewalld-legacy, gimp, glibc, golang-github-docker-libnetwork, google-guest-agent, gstreamer-plugins-bad, helm, kernel, kernel-devel, keybase-client, kitty, krb5, libarchive, libnfs, libslirp, nilfs-utils, openCryptoki, openQA, openssl-3, pacemaker, pcr-oracle, perl-DBI, perl-List-SomeUtils-XS, podman, python-pip, python-pydata-sphinx-theme, python-tornado6, python3-lxml, python311-mistune, python313-joserfc, rmt-server, sg3_utils, systemd, tracker-miners, and xdg-dbus-proxy), and Ubuntu (cifs-utils, linux-nvidia, linux-nvidia-6.17, linux-raspi-realtime, and ncurses).
USA Today reports on a Facebook post from a Washington state sheriff's office:
Four residents of Clallam County, a coastal region west of Seattle along northern Washington's peninsula, lost more than $673,000 in just three days, according to the Clallam County Sheriff's Office... The smallest amount lost was $3,500, which someone purchased in Apple gift cards for a scammer posing as an employee with Microsoft technical support, the sheriff's office wrote. Another person lost $50,000 after they clicked on a malicious email and unwittingly granted the scammers access to their financial accounts.
The local Peninsula Daily News reports another scam involved a 64-year-old resident who attempted to contact Coinbase after seeing their account displayed shown as closed:
"Believing they were speaking with a legitimate Coinbase representative, the victim was told there was fraudulent activity on the account and was instructed to download a 'rescue' application," the [sheriff's] release states. "The application allowed the scammer to remotely access the victim's phone." They then convinced the victim to transfer approximately $200,000 worth of cryptocurrency to what was described as a secure wallet. The funds were instead transferred to the scammer and could not be recovered...
In one scam, reported Monday, an 84-year-old Clallam County resident believed they had received an email from their daughter with a photo. After opening the email, a fake Microsoft security alert appeared on the computer directing the victim to call a support number, according to the release. "The victim was transferred to someone claiming to represent the Federal Trade Commission (FTC) and was falsely told they were under investigation in a child pornography and money laundering case," the release states. "The scammers instructed the victim not to contact local law enforcement and claimed local banks were also under investigation. The victim was told their bank accounts were in danger of being seized and was instructed to purchase gold to protect their assets." In three separate transactions, the victim purchased approximately $420,000 worth of gold and gave it to an unknown man waiting at the end of their driveway.
"Only after speaking with bank officials did the victim realize they had been defrauded," the release states.
USA Today offers this advice from the sheriff's press release. "These criminals are professional manipulators who prey on fear, trust and urgency. We encourage everyone to pause before sending money, purchasing gold or gift cards, or transferring cryptocurrency. A simple phone call to a trusted family member, your bank or local law enforcement can prevent a life-changing financial loss."
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"Mozilla shut down the well-loved read-it-later Pocket app last year, and now Meta is launching an app called Pocket with an entirely different, AI-focused pitch," writes The Verge.
While it's not available for downloads in most locations, Meta's Pocket will allow people "to generate small, interactive apps and games using AI prompts," writes TechCrunch. They're called "gizmos", and Pocket "also offers a scrollable feed where you can play with gizmos others have made."
Some context from The Verge:
Meta CEO Mark Zuckerberg is all in on AI as the new social media, and he's previously described a vision of how users could use AI to make interactive experiences and share them with people. The launch of Pocket appears to be one manifestation of that idea... It follows Meta hiring engineers from a company called Atma Sciences Inc., which made an app called Gizmo, as Business Insider reported in March.
On a help center page, Meta also describes a gizmo as a "playable AI-generated experience," and when you post one, Meta says you can choose to let other people remix them.
"Based on the app's screenshots in Google Play, there are many similarities to Gizmo's original app, which is still listed," notes TechCrunch.
"Pocket is another example of Meta's push to make AI creation tools more mainstream, extending its earlier efforts, which included AI-generated images created via its Meta AI app and AI videos created with its app called Vibes. It has also added AI features across its social platforms... "
Given that Meta has not officially announced Pocket's debut, it's likely that Pocket is still in its initial experimentation phase. Its counterpart Gizmo, however, had generated 635,000 lifetime installs across both iOS and Google Play, according to Appfigures, which noted it had a 98% positive sentiment.
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"Companies spending heavily on AI are growing headcount faster, even in the entry-level roles that many fear are doomed," writes TechCrunch. That's the conclusion of new report tracking AI spending from Ramp's corporate card/bill pay data as well as Revelio Labs' workforce records from 21,599 U.S. firms:
According to the report, "high-intensity adopters" — firms that spend on average $30 per employee per month on AI in the first three months — saw headcount increase 10.2%. Headcount also rose across functions, including engineering, sales, administration, customer service, finance, marketing, and scientist roles. The strongest job growth among high-intensity adopters was in the information sector, which includes software, internet, media, and tech-adjacent firms.
Despite these positive signals, the data isn't as rosy as it seems. It skews heavily toward tech-forward, knowledge-work firms — ones that might have VC-backing and are growing fast anyway, making it difficult to say whether AI is contributing to the hiring or just showing up at companies that are expanding anyway. "This paper does not show that AI universally creates jobs," the paper's authors admit, "but it does counter claims that AI will lead to broad job losses."
It also counters claims that AI is killing all junior jobs. Recent research from Goldman Sachs found that AI has already erased about 16,000 net jobs per month over the past year, with Gen Z and entry-level workers taking the brunt of the burden. But in tech-forward firms, the report finds that entry-level headcount actually rose by 12%... "For software and technology firms, AI can make core output cheaper or faster to produce: writing code, debugging, building internal tools, producing technical documentation, and supporting product development," the report reads. "Lower production costs in these workflows can raise the return to expanding the whole firm, not just the engineering team."
But companies that buy subscriptions and run pilots, yet did not go on to make sustained investments, don't tend to see any gains in headcount, per the report. That sets up the potential for a widening gap between firms that have the resources — like capital, technical staff, founder networks, and management bandwidth — to turn AI adoption into actual business gains and those that are stuck experimenting with subscriptions. In other words, this report suggests that firms that already have the resources are the ones that will see the largest gains.
CNBC argues another AI "narrative" was challenged this week: that open source can't make money. "The assumption was that giving your model away for free meant no business. That's breaking too, as open-model companies start posting real revenue and enterprises move from renting AI to running their own."
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America's Justice Department and FBI teamed joined Finland's National Bureau of Investigation to arrest a teenager they say is part of one of the world's biggest cybercrime syndicates, reports Tom's Hardware. The "Scattered Spider" syndicate has extorted over $100 million in ransom payments, according to Department of Justice figures:
19-year-old Peter Stokes is a dual U.S.-Estonian citizen who was trying to board a flight to Japan from Helsinki, when law enforcement caught up with him. [T]he main criminal complaint against Stokes stems from a May 2025 attack on a luxury jewelry dealer based in the United States. The attackers apparently called the company's IT helpdesk using Google Voice, posing as employees. They were able to convince the help desk into resetting their credentials, which allowed them to infiltrate three accounts, two of which had admin privileges. From there, the group, allegedly including Stokes, stole important data and held the jeweler at ransom, demanding an $8 million payment in crypto. The company ultimately regained access to their infrastructure and avoided paying the ransom, but the operational disruption still caused a purported $2 million in losses. This served as the spark that led to Stokes' eventual arrest in Helsinki, as the prosecutors slowly followed the paper and digital trail laid by the attackers.
Microsoft played a key role in the process by providing GDID [Global Device Identifier] data to the FBI to help them apprehend the alleged criminal... [I]t's a unique identifier assigned to every Windows install that tracks device-specific telemetry. It's the reason why sometimes changing a major component in your PC can revoke your Windows license... [T]he court documents from the case reveal that Stokes used Windows, from which investigators were able to link his physical hardware to specific internet activity and locations... Stokes' web activity, videogame history, IP addresses, tool usage (including Ngrok), Azure status, and more were logged with timestamps, and were provided to the investigators by Microsoft...
Stokes was carrying two hard drives full of incriminating evidence with him when boarding his flight to Japan... His real identity has actually been known since 2024, but since he was a minor living across Estonia and the UAE at the time, he could only be monitored until the time was right.
The official criminal complaint even includes a selfie photo that Stokes posted on Snapchat (hiding his face behind dozens of hundred dollar bills). It then notes that behind Stokes the wallpaper, carpet, and furniture match New York's Empire Hotel — and that Stokes had visited the hotel's web site in Germany before then flying to New York...
"Following the arrest, Stokes was extradited to the U.S., where he appeared in front of a federal court in Chicago for the first time on June 30, 2026, and he remains in custody," adds Tom's Hardware.
"The accused is now awaiting trial, having been charged with conspiracy, cyber intrusion, and fraud..."
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"A story widely accused on social media of being written using AI has gone on to win the overall Commonwealth short story prize," reports the Guardian.
In mid-May the story had been selected as a regional winner, but with critics on X and Bluesky "claiming it showed 'obvious markers' of AI use."
In the wake of the controversy, the Commonwealth Foundation conducted a review of the regional winners, which it said involved looking at drafts, time-stamped documents and notes. "We are satisfied with the testimonies of our writers and their confirmation that AI was not used in their writing," said foundation director-general Razmi Farook... Judging chair Louise Doughty described Nazir's piece as "an original, poetic and deeply moving story...." In a film released by the Commonwealth Foundation on Tuesday, Nazir... adds that he wrote six or seven drafts of his prize-winning story, and also speaks about his use of speech-to-text software, explaining that he could only see three or four lines of text on his phone screen at any one time, so he would perfect each line before moving on, which is how his story ended up being "highly polished"...
Initial social media reactions to the Commonwealth Foundation's announcement of Nazir's win were negative, with one X user writing: "immensely disappointing and disheartening. it feels like they wanted to stick to their guns after the entire GenAI uproar. I might think twice now before submitting my stories here". After Nazir was announced as the regional winner in May, some social media users reported running his story through AI-detection software. "Pangram flags at 100% but also, come on, if you know you know", said Wharton professor Ethan Mollick. However, the reliability of AI-detection software has been called into question.
In a statement to the Guardian, Farook said that "rather than surrender our judgment to AI-detection software, we asked our winners to show their working drafts, outlines, the evidence of an artistic journey. That software, it must be said, is not infallible: it returns inconsistent verdicts and, in doing so, corrodes the very trust on which a prize depends."
"When the machine's default voice is the metropolitan one, the writer who does not fit the expected mould is the first to fall under suspicion," she added. "The more startling her gift, the more her unfamiliar brilliance unsettles, the more readily she is accused of being a machine. A young writer in Kingston or Kolkata, in Kuala Lumpur or Kigali, must now prove not only her talent but her very humanity."
Nazir's story beat 7,806 other stories, the video points out (adding that their prize "demonstrates that in a world increasingly driven by algorithms, the human voice still matters.")
The Guardian notes that the winning story "includes multiple 'not x, but y' constructions and lists of three, which some consider to be signs of AI use," and that critics also drew attention to particular lines like "Sun on galvanise is a cruel instrument" and "Marsha lived two bends down."
In a new interview with the Times of India Nazir says "Now I'm frightened about publishing new work because the attacks haven't stopped."
Q: Which passages attracted the most criticism, and why do you think they were misunderstood?
Nazir: People criticised a line where I wrote: 'She had the kind of walking that made benches become men.' That's magical realism. Think Salman Rushdie or Gabriel Garcia Marquez. It's a literary technique. In my story, the character 'Zoongie' believes she is so beautiful that even when no men are around, she imagines the benches becoming men who admire her. It exists only in her imagination. People interpreted it literally. There was another line about light reflecting from a sink. That came directly from my childhood. Our kitchen faced east, and my mother liked to keep everything spotless. We used to polish the sink, and when the morning sun hit it, it glittered brightly. People claimed that the image must have been AI-generated. But it's from my lived experience...
I've lived with diabetes for 62 years, which has damaged the nerves in my fingers and feet, and I'm currently undergoing chemotherapy. That's why I began using speech-to-text on my Android phone... I hope this episode leads to a better understanding of the difference between assistive technology and AI-generated writing...
Q: Many acclaimed writers like Ursula K Le Guin, Mary Shelley, and JRR Tolkien have also been falsely flagged by AI detectors. Where does this leave writers?
Nazir: What these AI detectors are saying is that if a piece of writing is too polished, it must have been written by AI. I refuse to accept that. AI was trained on human writing. Large language models, to me, are tools, much like a word processor. They don't replace the human spirit behind creative writing. Ask an AI to write a prize-winning story on its own and see what it produces. You still need human imagination and judgment to create literature.
Nazir added, "What I don't understand is why people continue to question the judges' decision."
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"The internet is filled with fakes," writes Gizmodo. "A court in India is setting out to address the problem by requiring more transparency from domain registrars to make it easier to crack down on fraud. And while the intentions might be good, Reuters is reporting that major American domain registrar GoDaddy is sounding the warning bells that the court's decision could fundamentally reshape the internet well beyond India's borders."
GoDaddy argues the move would even make the internet less safe, reports Reuters :
[Online fraud] is a key challenge for Prime Minister Narendra Modi's government, which last year received 2.4 million complaints of alleged cyber fraud amounting to $2.4 billion. Starting in 2019, lawsuits were brought by dozens of Indian and global firms — Amazon against fake shopping sites trading on its name and McDonald's complaining against bogus sites offering franchises. [More than 20 companies filed a complaint, the article notes, including Microsoft.] In December, an Indian court blocked more than 1,100 such websites. The New Delhi judge however went further, ordering sweeping new measures that tech experts say have rewritten rules of internet governance: Domain sellers should not offer buyers free privacy protection by default, the buyer's details should be released to anyone with a "legitimate interest" within 72 hours, and website addresses that are variations of protected brand names must be prohibited.
U.S.-based GoDaddy has challenged the directives before a larger bench of judges at the Delhi High Court, according to a Reuters review of non-public filings. It says the ruling will affect legitimate businesses that have names similar to big brands. Stopping privacy-by-default features, GoDaddy said, will result in public disclosure of name, address, telephone and email of legitimate website owners, exposing them to "foreseeable privacy and security risks" such as stalking and harassment.
As domain names operate globally, not locally, the order could force GoDaddy to regulate website addresses across the world, it said. On the court's order imposing a 72-hour deadline on companies to provide registration details to anyone with "legitimate interest", GoDaddy argues it has no wherewithal to assess who has legitimate interest or not. The "commercially destabilising" directives may force domain name companies to "exit India", said one of GoDaddy's appeal documents that ran into 5,121 pages... GoDaddy rivals, Arizona-based Namecheap and Netherlands-based Hosting Concepts, have also challenged the New Delhi ruling, court records show, although Reuters could not ascertain details of their appeals...
GoDaddy argues that diluting the privacy feature will run contrary to India's data protection law and the European Union GDPR law which mandates a "privacy by default" approach. Farzaneh Badii, a New York-based researcher on internet governance, criticised the New Delhi ruling, noting that Europe redacted such details because publishing them had been abused by harassment and targeted phishing. "The people exposed will be journalists, activists, small business owners, and private individuals. The brand impersonators will not," she said...
While the sweeping December directives were issued by a court, they followed government's submissions, documents showed... The judges will hear the appeals on July 16.
GoDaddy manages 80 million domains and serves over 20 million users, the article points out, with
annual revenue over $5 billion.
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