Microsoft's Voluntary Exit Offer reaches Xbox staff

Microsoft has launched a Voluntary Exit Offer, and about 60,000 employees, roughly a quarter of the company, are reportedly eligible. The Verge and Bloomberg say Xbox is among the participating teams. Staff must decide by early December.

Key facts

• Program: Voluntary Exit Offer (VEO)
• Announced: October 26, 2026, in a memo from Amy Coleman
• Countries: US, Canada, India, UK
• Eligibility: level 70 and below (up to vice president level)
• Eligible staff: about 60,000 (reports)
• Timeline: decide in early December, leave December 31 (CNBC)

What is Microsoft's Voluntary Exit Offer?

Chief People Officer Amy Coleman announced the program in a memo to staff that Microsoft also published on its official blog. Coleman says it gives eligible employees who may be considering a future outside the company a new choice to make that move now, with support.

The offer is time-limited and voluntary. Eligible staff can leave with financial support and career planning resources. Coleman wrote that some organizations are providing the offer and some are not, depending on each business's priorities and workforce needs.

A person familiar with the matter told CNBC that around 60,000 people are eligible, about 27% of Microsoft's 223,000-strong workforce. TechCrunch reports the terms are similar to Microsoft's standard severance.

Are Xbox employees included?

At first it was unclear. Eurogamer and PC Gamer both said they did not know whether Xbox was taking part. The Verge then reported, citing sources, that Xbox staff are eligible. TechCrunch says Bloomberg also named Xbox, Windows, Copilot and Finance among the participants. Microsoft's own memo does not name any divisions.

According to The Verge, participation breaks down like this:

• Participating: AI experiences, Copilot, CoreAI, Windows + Devices, Xbox, finance and human resources
• Partially participating: Cloud + AI, Microsoft AI, and corporate, external and legal affairs
• Not participating: marketing, commercial business, discovery and quantum, and security

How does this connect to the Xbox layoffs?

Xbox has been through a major reset this year. Kotaku notes the gaming division set a target of 3,200 job cuts through June 2027. Rock Paper Shotgun recalls that Matt Booty said in September the division was roughly three-quarters of the way there. RPS also cites a report from last week that more Xbox cuts were planned for October, November and January.

Eurogamer adds that Double Fine, Compulsion Games and Undead Labs have gone independent since then, while the futures of Arkane Lyon and Ninja Theory remain uncertain. GamesIndustry.biz notes the offer follows layoffs in July and September.

Why is Microsoft doing this?

CNBC says Microsoft is trying to balance its costly AI infrastructure build-out with capital efficiency. In July the company said capital spending for the September quarter would top $50 billion, compared with $34.9 billion a year earlier.

This is Microsoft's second voluntary program this year. In April it offered a voluntary retirement program to long-serving US staff. Business Insider reports about 9,000 people were offered it and around a third accepted. In July, Microsoft laid off about 4,800 people, a cut The Verge says mainly hit Xbox and commercial sales.

"The Voluntary Exit Offer is new for us. We'll learn from it," Coleman wrote. An internal note seen by The Verge says the offer is not based on age, length of service or performance, and that Microsoft may run another one where there is a business need.

For more on Xbox's turbulent year, read about why the Xbox and Netflix deal fell apart and the threat of closure at Arkane Lyon.

FAQ

Who is eligible for Microsoft's Voluntary Exit Offer?

Eligible employees at level 70 and below in participating teams in the US, Canada, India and the UK. Reports put the number at about 60,000.

Can Xbox employees take the Voluntary Exit Offer?

According to The Verge and Bloomberg, yes, Xbox is among the participating divisions. Microsoft's official memo does not name divisions.

When do employees have to decide?

CNBC's source says employees must decide in early December, and those who accept will leave on December 31.

Sources

• Official Microsoft Blog: Introducing a Voluntary Exit Offer
• The Verge: Microsoft offers buyouts to 60,000 employees
• CNBC: Microsoft offers voluntary buyouts
• TechCrunch: Microsoft offers buyouts to around 60,000 employees
• GamesIndustry.biz: Xbox staff among those offered voluntary exit
• Eurogamer: Microsoft Voluntary Exit Offer
• Rock Paper Shotgun: Microsoft voluntary buyouts