Microsoft has filed notice to permanently lay off 605 workers at its Redmond headquarters effective September 4, 2026. Axios notes 493 Redmond + other WA sites for the 605 total. The cuts are part of a sweeping Xbox gaming division restructure inside a global plan targeting approximately 3,200 roles in FY2027.

The layoffs form part of a broader corporate restructure.
The job cuts tie to restructuring of the Xbox gaming division.
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Tesla and SpaceX have confirmed Grimes County, Texas as the site for their Terafab semiconductor megafactory, with the first phase costing roughly $16.8 billion. The project targets the largest chip manufacturing facility on the planet to supply over 1 terawatt of compute per year that exceeds current and future global production capacity.
OpenAI has filed a motion asking a federal judge to dismiss Apple's trade secrets lawsuit, describing the claims as meritless. The dispute, which follows a July suit and this week's injunction request from Apple, highlights tensions after their prior partnership on Siri and OpenAI's hardware push.
Meta has released an early beta of Muse Code, a terminal-based coding agent driven by the updated Muse Spark 1.2 model and positioned against Anthropic's Claude Code and OpenAI's Codex. Substantially lower rates, including a contributor plan at $0.10 for every million tokens received, may encourage migration away from higher-priced options such as Anthropic's Sonnet 5.