According to a news report, Microsoft’s Xbox division is reportedly preparing for mass layoffs next month and deep cuts alongside marketing and other budgets. Those reported cuts would be the largest restructuring so far under Xbox lead Asha Sharma, who took over leadership of the gaming division in February.

Details on job cuts, such as the scale of cuts or what divisions they might be in, have not been disclosed but layoffs are coming shortly after Microsoft closes its fiscal year June 30.

Xbox Faces Ongoing Business Challenges

Microsoft has invested heavily into subscription services and cloud gaming to combat falling Xbox console sales and a lack of other big box office games, but it has come under growing pressure.

Sharma said in an internal e-mail to employees that Xbox’s managed margin is now down to 3% even after more than $20 billion on content, platforms and hardware subsidies across the last five years.

It also reported a 61% drop in annual revenue for the same period of almost half a billion dollars.

Under a new leadership, strategy changes persist

The report cited Sharma as stating Xbox will have to rebuild aspects of its platform infrastructure and reconsider certain areas in its portfolio over the next couple months.

Reported restructuring comes on the heels of several strategic changes the company announced earlier this year. The comparable value for the Call of Duty, last month, was cut by Microsoft for its Game Pass subscription service and ended day and date launches of future Call of Duty games on Microsoft platforms. Microsoft did not provide an official answer to query over the purported layoffs or funding cuts. 

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Oracle estimated spending on AI infrastructure would rise much more steeply in fiscal 2027, and revealed it may boost nearly $40 billion of debt and equity financing, raising concerns about its growing leverage. Oracle’s quarterly numbers beat analyst expectations and shares slid 8.9% in extended trading following the announcement.

Oracle Lifts AI Infrastructure Spending

Oracle also communicated its projected fiscal 2027 capital expenditure could be as high as $95 billion, significantly above the estimate of analysts at $67.66 billion.

CFO Hilary Maxson said the company anticipates its direct spending will be about $70 billion directly, along with another $20 billion to $25 billion it expects customers would pay off. It was an additional payment made as Oracle’s expenditure has reached $55.

Stargate Project and OpenAI Expansion

One other significant detail the company shared is its massive Stargate data centre project, being built with OpenAI and others in Texas, which is expected to be more than 75% complete within 90 days.

OpenAI customers will also be able to use advanced coding models on Oracle cloud platform, Josh Jacob said. Coming in at one-gigawatt, the company is on track to deliver almost as much capacity in Q1, 2027 (i.e., nearly matching what it delivered in total for the previous four quarters) according to executive Clay Magouyrk.

Fundamentally Solid Results Masked by Fundraising Issues

Also, Oracle said revenue for the fourth quarter was $19.18 billion, beating analyst expectations of $19.10 billion and adjusted earnings per share was $2.03 as expected.

Remaining performance obligations were $638 billion, compared with the expectation of $592.52 billion Analysts, however, said investor concern centered more on how Oracle plans to finance its rapidly expanding AI infrastructure as capital spending keeps rising.

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Woolworths is in talks with staff after announcing it will offload hundreds of jobs following the release of a plan to simplify operations and cut costs. The supermarket giant has not disclosed the number but roughly 10,000 head office staff are affected.

 The supermarket giant has not revealed exactly how many of its 10,000 or so head office employees will be impacted. But hundreds of jobs across teams such as IT and Finance could be at risk.

Woolworths Cites Efficiency and Competition

Woolworths said the move is part of the company’s efforts to stay competitive now that international players are making inroads into Australian retail. The retailer stated it had retained regional teams, and long-standing managed service contracts in Asia throughout a number of years, as well as continually reassessing these operations to tap into global capabilities while reducing costs.

A company spokesman said: We review these regularly to make sure we are accessing global best practice and keeping our costs low so we can pass on the best value for money to our customers.

Job Changes Follow Cost-Saving Strategy

Woolworths said the announcement is part of its work with creating a more efficient and leaner business. Chief executive Amanda Bardwell said in September last year that the company was refocusing on creating long-term sustainable growth, targeting $400 million in savings at back office costs.

Woolworths is the latest big Australian player to announce plans to off-shore some of its operations. NAB, Telstra and Officeworks recently announced similar moves citing cost pressures and efficiency aims.

While new stores and jobs are still expected

In addition to the termination of corporate roles, Woolworths said it forecasted 24 new stores opened in the next year. The company said these new locations are expected to generate around 2,500 jobs in Australia and New Zealand. The group employs about 202,000 people and has 1,715 stores in Australia and New Zealand (Woolworths supermarkets, Metros, Big W and Petstock) according to Woolies’ annual report for 2025.

Shares Rise as Investors React

The Woolworths shares rose 64 cents, or 1.75%, to $37.12 by midday trade after the report of the planned offshoring program.

Investors have been keeping a very close eye on the shares this year following second-quarter earnings results from February surpassing expectations for the retailer. Reported net profit in the first half fell by 49% to $366 million largely because of the hit from a $485 million provision for remediation costs associated with underpayment of staff.

Earlier this year, Woolworths also acknowledged a multi-year rollout of artificial intelligence tools was underway, with two-thirds of support office employees utilising Gemini weekly.

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Key Highlights

• Barbeques will close down its 62 corporate stores in the coming weeks.
• The retailer could not find a buyer or close a rescue recapitalisation deal.
• The business had around 500 employees when it went into administration in February.
• Meanwhile, the fate of 27 franchise-operated stores is also unclear.
• Gifting remains unchanged where customers can redeem gift cards up until June 30.

Less than a month after going to the courts in an attempt to save it, Australian retail chain Barbeques Galore has now abandoned its company-owned stores after failing to attract a buyer or come to terms on a rescue recapitalisation deal, with hundreds of workers likely facing redundancy.

In February, the retailer had gone into voluntary administration, and was speaking to administrators and receivers about how best to move ahead. Attempts to find a buyer or restructure the finances had not gone well, the firm said.

Deal to Rescue Fails After Months of Negotiating

In an attempt to keep the company running, administrators and receivers have been working on a recapitalisation plan with key creditor Gordon Brothers. The plan was predicated on renegotiations with landlords, suppliers and other stakeholders. The two parties were in negotiations, but they could not reach an agreement under which the proposal would be put forward.

Receivers said by late May it had become obvious there were no viable bids to buy or restructure the Barbeques Galore group and winding-up was its only other option.

Hundreds of Jobs Affected

When the Barbeques Galore went under administration earlier this year it operated 89 stores and employed around 500 staff. The firm said it would close its 62 company-owned stores during the wind-up process, while landlords of 27 franchise-run stores were still to decide on which will stay open.

Receivers indicated employees will be re-employed during the receivership or let go as stores progressively close. They further noted that all impacted employees will be provided with the full amount of their accrued redundancy and termination payments in the regular course of separation.

Gift Cards Until June 30

Gift cards for Barbeques Galore can still be redeemed by customers until June 30, with some conditions. With the arrangement, customers needed to spend $2 after redeeming on a gift voucher each. A person with a $50 gift card must, for instance, carry out a purchase of at least $150 to use the kept value (the remaining $100 are paid separately). Unutilized Gift card balances will be treated as unsecured creditor claims after June 30.

Receivers Continue Asset Sales Process

Started by Max Mason back in the 1970s, the chain grew into amongst Australia’s most recognisable grill and outdoor lifestyle retailers. Operations remain in the hands of receivers during a wind-up period while they also search for prospective buyers for any remaining stores and assets, including clearing stock.

For a buyer, tough retail conditions made it more difficult to secure them, industry observers said. How much creditors will get back is contingent on how well assets are sold during the winding-up process.

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Apollo announced a one-of-a-kind $35 billion capital solution for Broadcom’s new AI XPV Platform in partnership with Blackstone and a club of premier global banks to address the soaring demand for artificial intelligence infrastructure.

The platform allows the deployment of 20+ gigawatts (GW) of compute capacity for top AI players by 2028. It will aid Anthropic’s plans to expand over 1GW of compute AI training and inference infrastructure announced earlier in the year, also starting mid-2026.

Launch of Platform for Accelerating Growth of AI Compute

The AI XPV Platform, as stated by Broadcom and Apollo, strategically aims to provide the long-term capital required for establishing expansive AI infrastructure.

The platform integrates Broadcom’s semiconductor and networking capabilities with creative funding from institutional investors. The companies claimed that the model was intended for addressing growing demand for computing power across the AI industry. Private capital is taking on larger roles in funding digital infrastructure, as it has with Apollo and Blackstone participating here in their role as primary capital partners.

Anthropic Expansion Among First Projects

The first deal will enable Anthropic’s expansion of AI compute capacity. The platform will provide infrastructure for AI model training and inference of over 1GW beginning in mid-2026, Broadcom said. As the need for advanced computing resources grows, the larger AI XPV Platform will continue to broaden.

Apollo Labels AI Compute As A New Asset Class

Jamshid Ehsani, a partner at Apollo, characterised the transaction as the biggest private financing executed by the firm. His rationale states that AI compute is a new and meaningful asset class arising out of strong contracted cash flows, an increasingly critical role in the development of AI Alphabet soup, and demand from hyperscalers and frontier AI laboratories.

The fact that companies need big checks to actually build compute power for AI shows we should be looking at entirely new financing models, Ehsani added.

Demand for AI infrastructure 

Broadcom claims that the need for AI compute is outpacing what traditional capital markets can deliver. This transaction is a key pillar of the AI XPV Platform and is an example of what tech companies can accomplish with large-scale capital partners, said Won Kim, Head of Corporate Development and AI Infrastructure Partnerships at Broadcom.

In a statement, the company said it would build off Apollo, Blackstone and other partners to further expand the platform as investment in AI infrastructure continues to grow. Morgan Stanley was the lead advisor for Broadcom and JP Morgan Chase was the co-advisor. 

FAQs

1. The companies announced how much funding? 

Apollo and partners unveiled an initial capital solution worth $35 billion

2. Who are the main partners in this project?

The platform counts Apollo, Broadcom, Blackstone and a handful of global banks among its participants.

3. How will Anthropic benefit?

The initial $30M will help Anthropic scale over 1GW of AI compute 

4. What do the companies attempt to achieve with the platform in the long-run?

The goal for them is to make 20GW+ of compute capacity enabled through the AI XPV Platform for frontier AI labs by 2028.

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A new report by Allianz Australia has revealed that as living expenses climb, many Australian households are putting off repairs on their homes and vehicles, risking potentially expensive repairs over winter.

Aussies under the pump of the cost-of-living crisis are gambling $440 million on a game of winter roulette with their largest assets. With household budgets tight, one in four Australians have active plans to put off essential home maintenance amid rising bills, according to new data.

But experts are warning that the gamble has backfired, with properties now left vulnerable to extreme weather, explosive fires on their doors and a period of annual increased break-ins.

Insurance claims in the northern winter 2025 drew $204.6m in home and contents claims and $2389m (up from 13%) during motor incidents according to an Allianz Australia report released Friday.

Host homes and cars remain unfit for purpose due to cost-of-living pressures 

In its research, 55% of Australians had not winterised their home and 68% had also skipped maintenance on their vehicles. Statements attributed to Allianz Australia’s Chief General Manager of Consumer Suez Ford indicated that many Australians go into winter without following simple steps that can enhance safety as well as minimise risk and damage.

The need for heating and power prompts several homes to do what they did not do even if the report warns of the dangers of worse winter weather as financial pressures force many people to consider deferral maintenance.

More Than 1,000 Winter Insurance Claims Related To Storm Damage

Winter 2025 concisely reported two major lines: roof damages and serious visible sipping. The claims came to nearly $60 million, but just 25% of homeowners admit they checked their roofs before the winter rain set in. The results underscore an increasing expense of weather-related harm as preventive maintenance is put off.

Fire Hazards Caused by Faulty Heating Devices

Heating hazards ‘huge concern’ this winter, report finds. Excessive Insurance Claims Receive massive insurance claims of over $65,000. It is associated with fires caused by faulty electric blankets while inadequate fireplaces causing damage for more than US$ 20,000.

Even more worrying is that fewer than one in five Australians checked that electric banquets for damage before using them, despite the risk, and less than half tested their smoke alarms. 

Additional Expenses from Winter Theft And Road Accidents

The risk of winter is not limited to homes, and figures show theft from vehicles also driven up insurance claims. On average, $7.1 million worth of home theft claims were made in winter 2025 but only 18% of homes took some additional security measures over the season.

Allianz Chief Claims Officer Luke Whenman said that limited visibility, wet roads and more animals moving about on roadways during winter months present an extra level of risk, meaning preparation and maintenance are even more essential.

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Key Highlights

• Reports indicated that SoftBank was trying to obtain a margin loan of no less than $6 billion.
• The loan would be secured against the company’s holdings in OpenAI.
• News reported that talks with prospective creditors had reportedly stalled.
• SoftBank is said to be exploring other options for raising funds.
• The company was not ruled out of taking a margin loan at some point in the future.

According to a report published on Wednesday, efforts by SoftBank Group in recent weeks to obtain at least $6 billion margin loan backed by its OpenAI stake have come largely to a halt. Musk and the company are now at an impasse in negotiations with potential creditors, the report, which cites sources familiar with the matter, said.

A margin loan is a type of loan in which assets such as equity holdings can be used as collateral. In this instance, the suggested financing would apparently be supported by a financial investment from SoftBank in OpenAI. 

Now SoftBank is exploring different fundraising options, a per reports. The firm may opt for the margin loan later, the report added. Neither SoftBank nor OpenAI commented. The companies have not framework agreement formal confirmation report financing discussions.

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The Australian federal government, joined by the Tasmanian and South Australian governments has unveiled a new $105 million aid package to support Nyrstar’s smelting operations in Hobart and Port Pirie until end-2026.

The financing follows a previously announced $135 million support package from last August which expired on the May 1. The new help seeks to continue operations, while also helping the firm decide how to grow next.

New funding package for smelter operations

As part of the new deal, $62.5 million from the Commonwealth and $35 million from South Australia and $7.5 million from Tasmania will be paid into a bank account operated as a conditional deposit held by Germany.

The cash is meant to keep both smelters running while Nyrstar continues studies on possible upgrades and expansions. It will complete a pre-feasibility study and continue work on a two-year expanded feasibility study focused on increased production of critical and strategic minerals.

Federal Industry Minister Tim Ayres said the investment would increase Australia’s role as a supplier of critical minerals to support supply chains for technology, defence, energy and digital industries.

Supporting Hundreds of Jobs in Tasmania, South Australia

The funding package is set to save hundreds of jobs across the states. Tasmanian Premier Jeremy Rockliff claimed the Hobart zinc smelter directly employed about 550 workers and supported another 1,000 jobs indirectly across Tasmania. If Nyrstar goes under, Hiscall said the loss of such an operation would hurt the state economy for years.

The Port Pirie smelter itself directly employs just under 800 people in South Australia. SA’s Premier Peter Malinauskas said the facility still has significance for not just the local community but Australia’s wider industrial and manufacturing capacity.

Critical Minerals Expansion Under Consideration

Establishing the capacity to ramp up production of critical minerals at the Port Pirie site is a key priority under the new funding. Scrap metal is a common material incorporated into defence applications and its importance has grown further since China announced an export ban on the metal. The studies funded under the package will help define the extent of future upgrades at both sites, Nyrstar said.

Smelters need more support as market pressures persist

Hobart and Port Pirie smelts have suffered serious problems in years of poor global market conditions. Trafigura, Nyrstar’s parent company previously said its smelters were uncompetitive assets that had only continued to lose millions of dollars a month in what it dubbed a distorted market environment.

Once continued, feasibility work will resume later this year with Hobart smelter general manager Todd Milne saying the business would likely need more government support. Mr Milne also claimed the facilities are essential to Australia’s manufacturing sector, providing sulphuric acid among other products essential to industrial supply chains and base metals and critical minerals.

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Key Highlights

• Global X Space Tech ETF (ASX: MOON) has been reported to launch at ASX.
• The new fund will focus its investments on international companies in the space sector.
• At least 50% of revenue earned has to be space related.
• The news comes in the wake of mounting interest in an upcoming SpaceX IPO.
• The ETF does not have an official launch date yet.

Global X to launch a new space exchange-traded fund in Australia as interest in the sector swells ahead of an expected SpaceX IPO.

Global X Space Tech ETF (ASX: MOON) will invest in companies involved throughout the space economy including rocket launches, satellite infrastructure and communications services, data solutions and new space technologies.

Rather than being tied to a single company or stock, the ETF will give exposure to space value chains, a combination of startups and an alternative to fund the broader ecosystem rather than separate stocks.

This comes in the wake of growing investor interest in space-driven ventures. The BetaShares Space Industry ETF (ASX: RCKT) launched and became Australia’s first ASX-listed space-themed exchange-traded fund (ETF). The fund started trading two weeks ago and has gained 30% since, before its current pullback.

A portion of each company’s revenue has to come from space-related endeavors, around half or more of it actually, as per Global X’s requirement for inclusion in the ETF, thus making sure that space is a core component of each businesses’ activities and not merely a side project. Investors are really, really interested in space, said Christine Short, Nasdaq’s executive director of ETF product marketing.

With technology advancing and costs continuing to decline, the space industry is inevitably shifting from exploratory to commercial. The firm argued that space might soon form one national economy layer like the internet has done for service businesses and social societies across the past decades.

As per Global X satellite activity is associated with more than half of today’s space economy. The industry is shifting from single satellites to large networks. Also noting the opportunity of satellite broadband service, which it estimates could grow to US$100 billion by 2035, as bandwidth demand continues to surge.

Beyond the next decade, Global X envisages global space revenue possibly reaching US$1 trillion annually by 2034. Most of the rapid growth is projected for launch services, connectivity solutions and data services. The sector is still being primarily pulled by governmental spending. Global government space spending reached US$137 billion by 2025 while defence (military) related space spending at US$73 billion. 

Global X has not provided an official launch date for the Global X Space Tech ETF (ASX: MOON) though it announced that soon after launch investors will be able to trade.

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SpaceX IPO oversubscribed

Elon Musk’s SpaceX has drawn over $250 billion in investor demand before what could be the largest IPO offering ever. The company is seeking proceeds of $75 billion from its stock market debut, suggesting demand is currently running at around 3.5 to 4 times the size of the offering. That healthy attraction underlines the desire from investors to get access to one of the most valuable private companies in the world.

Strong Investor Demand for Pricing

Long-only investment funds have put in large orders for SpaceX shares, sources said, while Musk himself briefly joined a handful of Zoom meetings with interested investors throughout the roadshow.

On the other hand, subscriptions present an illustration of interest rather than a definite distribution. Investor interests, especially larger institutional interest usually come in towards the end of the process before the IPO price is determined.

SpaceX Executives Meet Institutional Investors

SpaceX President Gwynne Shotwell and Chief Financial Officer Bret Johnsen were scheduled to attend a lunch Wednesday hosted by Morgan Stanley in New York. The event was meant to attract some 300 institutional investors as the company continues to market its growth ahead of a likely pricing decision on Thursday afternoon.

SpaceX Focuses on Starlink, Future AI Potential

SpaceX is selling both its rocket-launch enterprise and domestic satellite-internet systems, which it praised to investors with both in an offering roadshow presentation and paperwork filed prior to the planned IPO.

Also, the firm cited what it calls a $23 trillion market opportunity for artificial intelligence. SpaceX claims it has a unique vantage point to leverage its launch capabilities to build a distributed computing infrastructure in space that can help satisfy demand for computing power growing exponentially.

The company believes it will mitigate some of the challenges related to electricity generation and worldwide data centers that are set to grow on Earth by sending hardware into orbit via SpaceX. It also mentioned how it is increasing internet access via Starlink to help billions of people across the globe get connected.

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