Microsoft is expected to announce a new round of layoffs next week, with several thousand jobs at stake, according to Business Insider. Among others, the company’s sales, consulting, and Xbox divisions will be affected.
The cuts are reported to affect less than 2.5% of Microsoft’s approximately 220,000 employees worldwide, meaning the layoffs will be less extensive than last year’s workforce reductions.
In 2025, Microsoft laid off approximately 15,000 employees in two rounds: 6,000 workers in May, followed by another 9,000 in July.
The company is reportedly rolling out the cost-cutting measures while continuing to boost investments in AI. Microsoft has faced increased pressure from investors regarding how AI will affect the company’s future business model and cost structure.
Earlier this year, the company for the first time in its history offered voluntary retirement buyouts to roughly 8,750 employees, or about 7% of its workforce.
Visual Studio Code 1.127, an update to Microsoft’s popular kinda-sorta open-source code editor, brings improvements to the Agents window for managing agent sessions and makes the browser tools for agents generally available. Browser tools for agents was previously a preview feature.
Released July 1, VS Code 1.127 can be downloaded for Windows, Linux, and Mac from code.visualstudio.com.
This release of VS Code features agents that can build and test web apps in the integrated browser, safer per-site browsing with per-site permissions, and new ways to keep agent sessions organized. Browser tools for agents, which let agents open pages in the integrated browser, read content and console errors, take screenshots, and select, type, and navigate to verify its own work, become generally available with this release. The browser tools are now enabled by default.
Per-site browser permissions in the integrated browser allow pages to use more web APIs including geolocation, camera, microphone, a
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