Microsoft is offering voluntary buyouts to around 60,000 employees in the US, UK, Canada and India, and The Verge reports that Xbox is one of the teams taking part. Microsoft’s own announcement doesn’t name any teams, so here’s what’s confirmed and what’s reported.
The Voluntary Exit Offer was announced on 26 October 2026 in a memo from Amy Coleman, Microsoft’s Chief People Officer. It lets eligible staff leave the company voluntarily with a support package, rather than through another round of compulsory layoffs.
What Microsoft has confirmed
Coleman’s memo says the offer “will be available to eligible employees in participating teams in Canada, India, the United Kingdom and the United States at level 70 and below.” It also makes clear that not everyone gets it: “Some organizations are providing the Voluntary Exit Offer, and some are not. Participation varies based on each business’s priorities, customer commitments and workforce needs.”
The memo doesn’t mention Xbox, Microsoft Gaming or any studio. Microsoft told GeekWire that about 60,000 people are eligible. That’s roughly a quarter of its 223,000 staff. There’s no age or tenure requirement, performance isn’t a factor, and the package is equivalent to Microsoft’s standard severance. Staff have until the first week of December to decide. Microsoft also said the offer “is not a replacement for layoffs”.
Where Xbox comes in
According to The Verge, staff in “AI experiences, Copilot, CoreAI, Windows + Devices, Xbox, finance, and human resources teams” are eligible. The Verge cites unnamed sources familiar with the situation. Microsoft hasn’t confirmed this publicly, and Xbox hasn’t commented on Xbox Wire or on X.
None of the reports we’ve seen say whether Xbox’s eligibility covers its studio groups, such as Activision, Blizzard, Bethesda/ZeniMax or King, or only the central Xbox organisation. Eligibility is also limited to those four countries and level 70 and below, so plenty of people at Xbox and its studios won’t qualify, including anyone based elsewhere in Europe.
The wider picture
The offer lands during a long restructure at Xbox. In July, Xbox CEO Asha Sharma announced plans to reduce the team by about 3,200 people over the financial year. Then in September, Matt Booty confirmed 268 more role eliminations. Separately, Fortune has reported that further rounds of Xbox layoffs are planned for October, November and January, though it noted those plans can change. Microsoft hasn’t said how the exit offer fits with those plans.
Microsoft reports its quarterly earnings on Wednesday, which could shed more light on the cost of the offer. We’ll update this story if Xbox says anything about it.
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