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Xbox voluntary exit offer could affect 60,000 jobs

Published 14:44 27 Oct 2026 GMT

Updated 14:44 27 Oct 2026 GMT

Lum Haliti
Xbox voluntary exit offer could affect 60,000 jobs

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Here's what it means for the UK

A leaked internal memo has revealed that Microsoft's Xbox voluntary exit offer could affect up to 60,000 staff across the US, UK, Canada and India.

Microsoft has opened a new Voluntary Exit Offer (VEO) to staff at level 70 and below in "participating teams".

Those teams span the US, UK, Canada and India, and the scheme is open now, GamesIndustry.biz reports.

Two rounds of layoffs already hit Microsoft this year, in July and September, with Xbox and commercial sales taking the brunt.

According to GamesIndustry sources, further cuts are still being planned.

Recently, alongside Sony and Nintendo, Microsoft was one of the console makers that refused to pass on tariff refunds to customers.

Why Microsoft launched the Xbox voluntary exit scheme

Amy Coleman, EVP and chief people officer, explained the thinking in the memo.

"The Voluntary Exit Offer is new for us," she wrote. "We'll learn from it."

She added that the business would "keep helping people focus on the work that matters most, build new skills and, where it makes sense, find new opportunities across Microsoft."

Coleman linked the scheme to an earlier Voluntary Retirement Program, which this year covered roughly 9,000 US staff whose age and length of service together reached 70.

Which teams does the Microsoft exit offer cover?

Alongside Windows and Devices, finance and human resources teams, the memo names Xbox, Copilot and CoreAI among the eligible groups.

Microsoft's AI experiences unit is also included.

Cloud computing, legal affairs and corporate teams count as only "partially participating".

How many jobs could the Microsoft exit scheme affect?

Reports put the figure at up to 60,000 employees across the eligible teams in the US, UK, Canada and India.

Microsoft has not said how many staff it expects to take the offer.

Has Microsoft cut Xbox jobs before this year?

Yes, Xbox and commercial sales staff already faced layoffs in July and September.

The new exit offer follows those cuts, and further reductions are reportedly still under discussion.

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