The short version
- Microsoft has launched a Voluntary Exit Offer for staff in participating teams in the US, Canada, India and the UK. Microsoft confirmed to TechCrunch that about 60,000 employees are eligible.
- Bloomberg and Reuters report that Xbox is one of the teams taking part, alongside Windows, Copilot and Finance. Microsoft hasn't published its own list.
- People who take it reportedly decide by early December and leave at the end of the year, on terms similar to Microsoft's standard severance.
- It lands on top of the 3,200 job cuts Xbox announced in July. Microsoft reports quarterly results on October 28 in the US, early on October 29 in India.
What Microsoft announced
On October 26, chief people officer Amy Coleman sent staff a memo, which Microsoft then posted on its official blog. She called it "a time-limited, voluntary program" that gives people thinking about leaving financial support and career-planning help if they go now.
The official details are short:
- It covers employees at level 70 and below in participating teams. Level 70 sits around vice president, so this goes high up the ladder.
- It applies in four countries: the US, Canada, India and the UK.
- Not every team is offering it. Coleman said participation depends on each business's priorities, customer commitments and workforce needs.
- Eligible staff were told they'd get an email with their personal offer within hours.
Coleman said the plan builds on a Voluntary Retirement Program Microsoft ran earlier this year. That one, in April, went to about 8,750 retirement-age employees, and more than 30% of them took it, according to TechCrunch.
Image: Microsoft
How big 60,000 is
Microsoft had about 223,000 employees at the end of June, so roughly a quarter of the company is eligible. That doesn't mean anywhere near that many will go. A buyout only works if people choose it, and Microsoft hasn't given a target.
Business Insider, which first reported the plan, says the terms are close to Microsoft's normal severance. It also says a spokesperson told it there are no plans for another buyout right now. Microsoft hasn't given any India-specific terms, so how the payout works under Indian employment rules is still unknown.
Where Xbox comes in
This is the reported part. Bloomberg, as cited by TechCrunch, says the participating teams include Xbox, Windows, Copilot and Finance, while data centre, sales and marketing staff are left out. Reuters' source gave a similar list: AI experiences, Copilot, finance, HR, Xbox, and Windows and Devices, with marketing, commercial business and security excluded.
Two outlets with separate sources saying the same thing makes it fairly solid. Still, Microsoft hasn't said how many Xbox employees qualify, and there's no Xbox leadership memo about it that's been made public.
It's not clear either whether "Xbox" here covers the big publishing groups. Activision, Bethesda and Blizzard sit under Microsoft Gaming, and none of the reports breaks it down that far.
Xbox's 2026 so far
The offer makes more sense next to what Xbox staff have already been through this year.
Image: Zerocade
- July 6: CEO Asha Sharma's "Resetting XBOX" memo on Xbox Wire set out about 3,200 job cuts across Microsoft's 2027 financial year, with about 1,600 that day. It said Xbox was losing 64 cents for every dollar invested in a typical year. Compulsion Games and Double Fine went independent.
- September 22: another 268 roles went across Halo Studios, other first-party studios and central teams. Microsoft said the reset was about three-quarters done. Undead Labs moved to a new publisher, and two deals to sell Ninja Theory fell through.
- October: Microsoft began closing Ninja Theory, Arkane Lyon is still looking for a buyer, and Xbox's first chief operating officer, Helen Chiang, left after three months.
Seen that way, a buyout is a gentler tool than layoffs. People choose to go, and Microsoft gets to shrink teams without picking names. The catch is that you can't choose who leaves, and experienced developers with good options elsewhere are often the first to say yes.
What it means for players
Nothing changes for your games or Game Pass today. No game has been cancelled as part of this, and the July memo said no announced first-party games were being cancelled either.
The bigger question is timing. If a lot of experienced Xbox staff take the offer in December, studios could lose people right as they move on to their next projects. Gears of War: E-Day has just launched, and Forza Horizon 6 reaches PS5 on January 26, 2027. That's our read, not a report. The acceptance numbers are what will tell us.
What to watch next
Microsoft reports results for its July to September quarter after US markets close on October 28, which is early on October 29 in India. Watch for any figure on what the buyouts will cost, and for gaming numbers. Activision still hasn't shared Modern Warfare 4's launch sales, and the call is the next place they could show up. After that, the real number comes in December, once the decision window closes.
