- Microsoft is offering a voluntary exit offer for over 25% of its workforce, up to 60,000 employees.
- A new report reveals this offer includes employees from Xbox and many other branches within Microsoft.
- The company’s gaming business is also expected to see multiple rounds of layoffs in the coming months.
Since the dawn of the AI era, Microsoft has trimmed thousands of employees to reserve its resources. It laid off over 5000 staff, including Xbox developers, earlier this year and fired over 15000 staff in 2025.
Xbox is also undergoing restructuring that has seen hundreds of developers already laid off.
Microsoft has now announced that it is looking to get rid of over 25% of staff, which accounts for up to 60,000 employees across multiple countries. The company has issued a new voluntary buyout offer that is active across the US, UK, Canada, and India.
Why it matters: Instead of controversial layoffs, Microsoft has turned to encouraging more than a quarter of its staff to leave with financial support and career-planning resources. The move comes as it tries to balance spending on AI services by shedding unnecessary headcount.
A new report by The Verge now highlights that Xbox is also a part of this program, including AI experiences, Copilot, CoreAI, Windows + Devices, and other teams.
This offer gives eligible employees who may be considering a future outside the company a new choice to make that transition now with support.
-Microsoft.
In other words, Microsoft is likely incentivizing Xbox developers from various studios to leave on their own. This move comes as the new Xbox CEO, Asha Sharma, reportedly prepares three new rounds of layoffs that are planned for the next few months.
This is a time-limited, voluntary program that gives those who are eligible the opportunity to leave Microsoft with financial support and career planning resources.
So, many Xbox developers are expected to take advantage of this voluntary buyout and leave with benefits ahead of layoffs that could threaten their jobs anyway. Xbox plans to continue layoffs until it sheds nearly a thousand more of its current staff.
Do you think many Xbox developers will use this opportunity to leave Microsoft voluntarily ahead of the looming layoffs? Let us know your thoughts in the comments below, or join the discussion on the Tech4Gamers forum.
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Shameer Sarfaraz has previously worked for eXputer as a Senior News Writer for several years. Now with Tech4Gamers, he loves to devotedly keep up with the latest gaming and entertainment industries. He has a Bachelor’s Degree in Computer Science and years of experience reporting on games. Besides his passion for breaking news stories, Shahmeer loves spending his leisure time farming away in Stardew Valley. VGC, IGN, GameSpot, Game Rant, TheGamer, GamingBolt, The Verge, NME, Metro, Dot Esports, GameByte, Kotaku Australia, PC Gamer, and more have cited his articles.
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