Microsoft offers Voluntary Exit to 60,000 staff, Xbox teams included

Microsoft launched a Voluntary Exit Offer on October 26, 2026, covering up to 60,000 roles. That equals about 27% of its 223,000-person global workforce. Xbox is named among the participating teams, alongside AI, Copilot and HR groups. Staff must accept by early December, with exits effective December 31, 2026.

Xbox staff are explicitly listed among eligible teams for the new Voluntary Exit Offer.
July's 4,800 job cuts and September's layoffs were concentrated mostly in Xbox and commercial sales.
Additional layoffs are reportedly planned beyond the current voluntary exit program.
Fortune reports the Xbox unit's underperformance has dragged on Microsoft's overall financial results.

Gaming chief Phil Spencer retired earlier this year amid a wave of executive departures.
Chief communications officer Frank X. Shaw and LinkedIn CEO Ryan Roslansky also announced exits.
Rajesh Jha, EVP of experiences and devices, retired alongside Spencer earlier in 2026.
These exits land on top of the Xbox unit's two prior rounds of layoffs.

Microsoft says the program is not a signal it needs fewer employees overall.
Layoffs remain a separate tool the company uses depending on business conditions.
Peer tech firms saw 3% to 5% uptake on similar past buyout offers.
"This offer gives eligible employees who may be considering a future outside the company a new choice to make that transition now with support." - Amy Coleman, Chief People Officer

For Publishers & Developers: Budget Q1 2027 senior-hire requisitions targeting departing first-party console engineers and producers.
For Investors & VC: Source Q1 2027 spinout studios founded by departing first-party leads with severance runway.
For Service Vendors: Pitch co-dev and porting capacity to thinned first-party studios ahead of 2027 roadmaps.