THE HOT STORY

Microsoft cuts 4,800 jobs in reset

Microsoft is eliminating 4,800 jobs, or 2.1% of its workforce, as the software giant restructures parts of its commercial and Xbox businesses. Its Xbox division will lose about one-fifth of its staff, including 1,600 jobs immediately and additional cuts in the coming months. “The way technology is built, deployed, and used is transforming faster than at any point in my time here,” Amy Coleman, Microsoft’s chief people officer, wrote in a memo to staff. Xbox chief executive Asha Sharma told employees in an email that the “business today is not healthy.”

CNBC

Financial Times

The Times

WORKFORCE

Egypt to begin paying state employees under wage hike package

The Egyptian government will implement wage increases for state employees starting July 20, raising the minimum monthly income to EGP 8,000, said Minister of Finance Ahmed Kouchouk. The budget for wage allocations has risen to EGP 822.8bn. Employees under the Civil Service Law will receive a 12% annual bonus, while others will see a 15% increase in their basic salary. Public sector workers will also receive a monthly allowance of EGP 750. The measures will benefit around 1m teachers and 640,000 healthcare workers, with additional allowances for both sectors.

Zawya EN

Israeli employment rates dropped in May

Israel's employment rate fell to 59.9% in May, down from 60.1% in April, according to the Central Bureau of Statistics (CBS). The workforce comprised 4,469,000 individuals, with 126,500 unemployed, marking a 2.8% unemployment rate. Both men and women experienced declines in employment rates. The Jerusalem district reported the highest unemployment at 4.1%, while Tel Aviv and central Israel had the lowest at 2.4%. CBS noted that full-time employment increased slightly to 79.1%. The number of job vacancies reached 152,134 in December 2025.

The Jerusalem Post

LEGAL

UAE employers cannot change contracts without workers' written consent

In the UAE, employers cannot alter employment contracts without the written consent of employees, according to the Ministry of Human Resources and Emiratisation. This regulation is outlined in Federal Decree-Law No. 33 of 2021, which aims to safeguard employee rights. Any changes to contracts, including salary or job title, must be officially documented through the ministry's electronic systems. Amendments that reduce employee rights are considered void unless they offer more favourable conditions. The ministry has emphasised the importance of following proper procedures for any contract modifications.

Gulfnews.com

TECHNOLOGY

Saudi Arabia opens global call for AI ethics forum research submissions

Saudi Arabia is inviting research submissions for the Global Forum on the Ethics of AI, scheduled for September 14-17 in Riyadh. The International Center for AI Research and Ethics, in collaboration with UNESCO, aims to enhance global dialogue on AI ethics. Submissions are welcome from researchers, policymakers, and students, covering topics such as the implementation of UNESCO's Recommendation on AI ethics and international governance. The deadline for submissions is July 18, with selected papers to be published in a special issue of the Journal of Artificial Intelligence for Sustainable Development.

Arab News

INTERNATIONAL

Argentina's plan for AI-run companies 'can't avoid humans'

Corporate attorneys say Argentine President Javier Milei's vision of “automated companies" run by AI - introduced as part of a comprehensive bill seeking to modernise and cut bureaucracy in corporate law - would be required to have a human administrator to oversee operations. It would be "too wild a first step to dispense with human agency entirely,” observed Lawrence Cunningham, director of the Weinberg Center for Corporate Governance at the University of Delaware, who nevertheless called Milei's proposal bold. “We’re not ⁠changing the world here so much as we’re recognising that you might run a business without any HR,” he said. “It’s the beginning of something."

Reuters

Spain immigration amnesty draws 1.2m applicants

Some 1.2m unauthorised immigrants have applied for legal status in Spain under an amnesty programme promoted by Prime Minister Pedro Sánchez’s leftwing government, more than double the estimated number. A total of 1,174,978 applications were submitted between mid-April and June 30 when the window closed, Secretary of State for Migration Pilar Cancela said. Latin America accounted for 67% of the submissions; African nationalities followed with 22.9%. “Without immigration, Spain would lose 19% of its GDP by 2050,” Sanchez said. “And what does that mean in business terms? It means, for example, that 90,000 bars would have to close, that 50,000 primary and secondary classrooms would find themselves without students, and that around 220,000 farms would disappear.” Without immigration, he added, Spain would be “poorer, emptier, weaker and without the resources to fund its welfare state . . . The only decent thing to do is extend a hand, not turn our backs on immigration.”

AlJazeera

Financial Times

Mercedes wants its employees to work longer hours for the same salary

Mercedes Benz has told its employees that it wants them to work longer hours for the same salary. "The cost per hour must decrease – in development, sales, administration, and production . . . we should work more for ⁠the same pay in all areas," chief executive Olaf Kallenius wrote in a note to the German carmaker's employees. Mercedes' works council said employees are expected to bear the burden of the company's challenges - even though responsibility does not lie with them.

Reuters

Russian court hands out 'LGBT Movement' jail sentences

A Russian court has sentenced the owner of an LGBT nightclub and two of its employees to prison for their involvement in what authorities have labelled an "extremist organisation" - the first case brought under a ban on what Moscow calls the "LGBT movement." Vyacheslav Khasanov, the owner of the "Pose" club, received a seven-year sentence, while manager Diana Kamilyanova and art director Alexander Klimov were sentenced to six years and two years, respectively. All three denied the charges. Russia's Supreme Court designated the "LGBT movement" as extremist in ⁠2023 and those supporting it have been designated as terrorists.

U.S. News

OTHER

Sony is first console giant to stop making physical games

Sony will stop producing physical discs for all new PlayStation game releases from January 2028, completing its transition to digital distribution as consumers increasingly buy games online. Digital downloads accounted for around 80% of the company's full-game software sales in fiscal 2025, with all new titles from 2028 to be sold exclusively through the PlayStation Store and retailers offering digital formats. The move will not affect games already released or scheduled for disc launch before 2028. Sony also announced it will begin closing the PlayStation Store on legacy PS3 and PS Vita consoles, starting in selected markets this year before expanding globally in 2027, citing the ageing platforms' inability to support modern payment systems. Previously purchased games will remain available for download after the stores close.

TechCrunch

Financial Times

Reuters

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