Microsoft Offers Voluntary Exit to Up to 60,000 Employees Including Xbox Staff

Microsoft has launched a company-wide Voluntary Exit Offer (VEO) that could affect up to 60,000 employees, with Xbox staff confirmed as eligible alongside workers in AI, Windows, finance, and human resources teams.

What the Offer Covers

Executive Vice President and Chief People Officer Amy Coleman announced the program through an internal memo, describing the VEO as “time-limited” and open to “eligible staff in participating teams” across four countries: the United States, United Kingdom, Canada, and India. The offer applies to employees at level 70 and below, according to GamesIndustry.biz.

Sources familiar with the situation told GamesIndustry.biz that eligible teams span a broad range of Microsoft’s operations, including AI experiences, Copilot, CoreAI, Windows and Devices, Xbox, finance, and human resources. Microsoft’s cloud and AI division, MicrosoftAI, and corporate, external, and legal affairs are listed as only partially participating in the program.

Scale and Context

As GamesRadar reports, 60,000 eligible employees would represent more than a quarter of Microsoft’s total global workforce. The Verge originally surfaced that figure, framing the VEO as one of the largest voluntary departure programs the company has undertaken.

In her memo, Coleman framed the offer as part of a broader strategic shift in how Microsoft handles workforce transitions. “The Voluntary Exit Offer reflects an important part of how we’re evolving our approach to change: creating greater flexibility and, where possible, more ways for employees to shape their next chapter,” she wrote, adding that the company would continue helping staff “focus on the work that matters most” and build new skills.

Part of a Longer Pattern

The VEO is not Microsoft’s first move of this kind. Earlier in 2025, the company ran a Voluntary Retirement Program aimed at roughly 9,000 US-based employees whose combined age and years of service totaled at least 70. Coleman referenced that program directly, saying the new offer builds on lessons learned from it.

The announcement also follows two rounds of layoffs in July and September 2025, both of which hit Xbox and commercial sales teams particularly hard, per GamesIndustry.biz. Sources cited in the same report indicate that further layoffs beyond the voluntary program may still be on the horizon, suggesting the VEO is one part of a wider restructuring effort rather than a standalone measure.

What This Means for Xbox

For the gaming division specifically, the inclusion of Xbox teams in a reduction program of this scale adds another layer of uncertainty following months of cuts and reorganization. Microsoft has not publicly outlined which Xbox roles or studios fall within the eligible categories, and the voluntary nature of the offer means the eventual headcount impact will depend on how many employees choose to participate before the deadline closes.

Sources: GamesIndustry.biz, GamesRadar