Microsoft offers voluntary exit to 60,000 staff, including Xbox

Microsoft has announced a program called the Voluntary Exit Offer for thousands of its employees, including members of the Xbox team. According to Bloomberg, 60,000 workers are eligible — more than 25% of Microsoft's workforce.

The offer is not limited to Xbox. Employees in Windows, Copilot and finance teams are also eligible, while staff in data centers, sales, marketing, cyber security and quantum computing are not. A Microsoft spokesperson told Bloomberg that those who accept the offer will receive benefits similar to a severance package.

The company announced the program two days before its earnings report on October 28, 2026. For the latest reported period, Microsoft posted $90 billion in revenue, up 18%, and a profit of $35.8 billion, up 22%.

It follows an earlier round of cost cutting. In April 2026, Microsoft offered a Voluntary Retirement Program with severance pay, ongoing stock vesting and extended health benefits, and about 33% of eligible workers took the deal. In July 2026, mass layoffs affected nearly 5,000 people, including major cuts at Xbox.

Xbox has been undergoing a reset under CEO Asha Sharma that has included mass layoffs, studio closures and game cancellations. It was reported that further Xbox layoffs could be announced in October, with more rounds set for November and January 2027, though The Verge's Tom Warren said the October layoffs would occur later.