Tech news digest for Monday, July 6, 2026

Microsoft Announces Major Layoffs Amid Xbox Restructuring

Microsoft is laying off 4,800 employees as part of a significant restructuring of its Xbox division, which will see a 20% reduction in workforce. This move includes the spin-off of four gaming studios, such as Compulsion Games and Double Fine Productions, into independent entities. The layoffs follow a previous reduction of 9,100 employees last year and are part of a broader cost-cutting strategy as Microsoft's stock has dropped 19% in 2026.

• 1,600 positions will be cut from the Xbox division alone, with a total of 3,200 cuts planned through 2027.
• Over 30% of eligible employees participated in Microsoft's voluntary retirement program prior to the layoffs.

Even Realities Achieves Unicorn Status with $150M Funding

Even Realities, a Shenzhen-based smart glasses startup founded by Apple veteran Will Wang, has reached a $1 billion valuation following a $150 million funding round led by Meituan and Tencent. The company focuses on privacy by developing smart glasses that feature a heads-up display without a camera, aiming to enhance its next-generation platform and AI integration.

• Even's flagship product, the Even G2, launched in November 2025, emphasizes display-first technology.
• The average order value for Even's smart glasses is approximately $1,000, including accessories.

Samsung Increases Prices for Galaxy Watch 9 and Ultra 2

Samsung has announced a price increase for its upcoming Galaxy Watch 9 series and Watch Ultra 2, aligning with similar hikes seen in its foldable devices. The Galaxy Watch 9 40mm LTE variant will now retail for €459.00, marking a €50 increase from its predecessor, while the Galaxy Z Fold 8 Ultra is expected to be priced at €2199.00.

• Samsung’s new Galaxy Watch app leaks with Pixel Watch vibes and features [Gallery]. Samsung's Galaxy Wearable app redesign leaks with new features.
• Galaxy Watch 9 and Watch Ultra 2 will follow foldables in price increase, leak says. Samsung's Galaxy Watch series to see price increases.

Truist Boosts Cummins Price Target Significantly

Truist has raised its price target for Cummins Inc. (NYSE:CMI) to $901 from $815, maintaining a Buy rating. This adjustment reflects positive demand trends in power, data centers, and infrastructure services, suggesting strong potential for Q2 earnings.

• Wells Fargo previously raised Cummins' price target to $874, citing a key power award that enhances growth prospects in West Texas.
• UBS upgraded Cummins to Buy with a price target of $850, highlighting improvements in the truck market.

Tech stocks on track for record annual inflows as investors pile into the AI trade

Tech stocks are set to achieve their largest annual inflows in history, projected at $152 billion, according to Bank of America. The Nasdaq Composite experienced a remarkable 21.4% increase in the second quarter of 2026, its best quarterly performance since the post-pandemic rebound of 2020, largely driven by a surge in artificial intelligence investments. Despite a minor 2.8% pullback in June, the market has stabilized, and strong inflows are expected to continue into year-end, supported by an 18% increase in S&P 500 forward earnings estimates since the year's start.

Apple’s M6 chip could skip many new products, here’s what’s rumored

Apple is set to introduce its M6 chip this fall, but rumors suggest it may skip several product updates, including the iMac, Mac mini, and Mac Studio. According to Bloomberg's Mark Gurman, the M6 will only be available in a base model MacBook Pro, with no Pro or Max variants planned. Instead, Apple is reportedly fast-tracking the M7 chip, designed for significant advancements in on-device AI processing, which could launch as early as the first half of 2027. While the M6 may appear in a new iPad Pro and MacBook Air expected in early 2027, it seems many other products will not receive the M6 upgrade.

• Apple is accelerating the M7 chip's timeline, with a potential launch in the first half of 2027.

SpaceX President Gwynne Shotwell to donate stock to Trump Accounts

SpaceX President Gwynne Shotwell has pledged to donate stock to the Trump Accounts program, which aims to provide investment accounts for American children under 18. This donation, which includes shares from Shotwell and her husband, will benefit approximately 2 million accounts, particularly emphasizing support for children in central Texas. Shotwell, who holds a stake in SpaceX valued at around $2.4 billion following its recent IPO, expressed hope that this gift will inspire the next generation to pursue careers in space exploration.

• The Trump Accounts program launched on July 4, 2026, offering a $1,000 initial deposit for eligible children.
• Notable companies like Micron and Intel have also pledged support for the program.

Nvidia's Kyber NVL144 reportedly pushed back more than a year, Asian suppliers drop

Nvidia's Kyber NVL144, its next-generation AI server system, has been delayed by over a year to 2028 due to manufacturing difficulties with the PCB midplane, which connects all components. This setback has caused significant stock declines among Asian suppliers, including a 10% drop for Ibiden and an 18% fall for Kingboard Laminates. Additionally, Nvidia has scrapped the NVL72x2 design and the more powerful Rubin Ultra chip variant, leaving only a smaller version that delivers half the performance. Analysts suggest that while this delay gives competitors like AMD and Google an advantage, it does not indicate a slowdown in overall AI spending.

Amazon sunsets Mechanical Turk, the original "Artificial Artificial Intelligence"

Amazon Web Services (AWS) is discontinuing new customer sign-ups for its crowdsourcing service, Mechanical Turk, effective July 30, 2026. The announcement, made via AWS Service Availability Updates, indicates that while existing customers can continue using the platform, it will shift into maintenance mode with no new features. Launched in 2005 as a means to harness human intelligence for tasks difficult for machines, Mechanical Turk was repositioned in 2018 as a data annotation tool for AI training. However, a 2023 study found that many crowdworkers were utilizing language models themselves, diminishing the platform's value.

• AI labs now prefer specialized vendors like Scale AI and Surge AI for data tasks.

Meta’s woes deepen in India as child abuse ads on Instagram draw government ire

The Indian government has escalated its regulatory scrutiny of Meta, issuing a stern notice demanding the removal of child abuse-related advertisements on Instagram. This warning follows a BBC investigation that revealed the platform was running paid ads promoting child sexual abuse material. Meta, which has a significant presence in India with over 480 million Instagram users, has been directed to disable all such content immediately and provide a detailed explanation within seven days. Additionally, WhatsApp's new username feature is under scrutiny due to concerns that it could facilitate cybercrime, further complicating Meta's operations in this critical market.

• Meta claims to use AI technology to detect child abuse content but faces challenges.
• The company could face fines in the EU for failing to protect children under 13.