Microsoft Weekly Roundup July 4th Edition: Major Layoffs, Edge Security Alerts, and Authors AI Lawsuit Mark a Tumultuous Week

Microsoft Weekly Roundup: June 30th – July 3rd, 2025

Happy 4th of July! This week has been one of the most eventful in recent Microsoft history, with major developments spanning layoffs, security, legal challenges, and product lifecycle changes. Here’s a comprehensive recap of everything you need to know if you missed the daily headlines.

Massive Microsoft Layoffs Reshape Company and Gaming Divisions

On July 2nd, Microsoft announced it would lay off about 9,000 employees, representing roughly 4% of its global workforce. This wave of cuts follows two earlier rounds in May and June, which saw over 6,000 jobs eliminated. The layoffs are part of a broader push for efficiency and organizational streamlining as Microsoft continues to invest heavily in artificial intelligence and cloud infrastructure.

The impact is being felt across the company, but the Xbox division is especially hard-hit. High-profile projects like Perfect Dark and Everwild have been cancelled, and studios such as The Initiative have been shuttered. Teams at King (makers of Candy Crush), ZeniMax Media, and Turn 10 (Forza Motorsport developer) have also faced significant cuts. These changes mark the most substantial restructuring at Microsoft since 2023, underscoring the company’s shift in priorities as it doubles down on AI and cloud growth.

Emergency Microsoft Edge Security Update: Zero-Day Flaw Patched

On July 1st, Microsoft issued an emergency security update for Edge to fix a critical zero-day vulnerability (CVE-2025-6554) in the Chromium engine. This flaw, a type confusion bug in the V8 JavaScript engine, was already being exploited in the wild and posed a high risk of arbitrary code execution for users who visited malicious websites.

Edge users are strongly urged to update to version 138.0.3351.65 or later. The update also addresses an Edge-specific vulnerability (CVE-2025-49713) rated high severity. These vulnerabilities highlight the ongoing importance of timely patching in today’s threat landscape.

How to Update Microsoft Edge

• Open Edge and navigate to edge://settings/help

• The browser will automatically check for updates and install the latest version

• Restart Edge to apply changes.

Immediate update is strongly advised for all users. Both individual users and enterprises must act to secure their systems.

Microsoft Faces Lawsuit Over AI Training Data

On June 25th, a group of prominent authors filed a lawsuit against Microsoft, alleging the company used pirated versions of nearly 200,000 books to train its Megatron AI model without authorization. Plaintiffs include Kai Bird, Jia Tolentino, and Daniel Okrent, who claim their works were used to build a model that mimics the syntax, tone, and themes of copyrighted materials.

This lawsuit is part of a broader wave of legal action against technology companies for using protected content in AI training. The outcome could have significant implications for Microsoft’s AI initiatives and the industry at large.

The writers are seeking a legal injunction to halt Microsoft’s unauthorized use of their works and are demanding statutory compensation of as much as $150,000 for every book they claim was improperly used.

Microsoft Products Approaching End of Support

2025 is becoming a pivotal year for Microsoft’s product lifecycle, with approximately 120 offerings reaching end of support, transitioning to Extended Support, or being retired. Notable deadlines include:

• Windows 10 Home, Pro, Enterprise, and Education: End of support October 14, 2025

• SQL Server 2012 and 2014: Extended Security Updates end July 8, 2025

• Multiple Azure services and Office products are also affected

Once end of support is reached, these products will no longer receive security updates or technical support, increasing operational and security risks for organizations that delay migration.

Major Products Reaching End of Support in 2025

After these products reach their end-of-support date, Microsoft will stop issuing security patches, regular updates, and both complimentary and paid assistance. Online technical documentation will also no longer be updated, which could leave organizations more vulnerable to security threats and operational challenges.

This week’s news cycle highlights the pace and scale of change at Microsoft as it navigates the challenges of AI investment, product security, legal scrutiny, and evolving customer needs. Whether you’re an IT professional, a business leader, or a Microsoft enthusiast, staying informed is more important than ever.

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For more Microsoft Weekly Roundups, in-depth coverage, and daily updates, keep following msftnewsnow.com.