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Amid ongoing Xbox cuts, Microsoft is offering voluntary buyouts to approximately 60,000 workers across the company in its latest attempt to reduce staff.

Microsoft offers buyouts to 60,000 staff amid Xbox cuts, office mandates, AI spending pressure, and boycott scrutiny.

Background: Xbox cuts and a stricter office policy set the stage

The other week, Microsoft told some employees about plans to mandate four days in the office starting in February. That workplace change followed multiple rounds of layoffs at the company's gaming division, Xbox.

In September, Xbox executive Matt Booty said the division was "roughly three-quarters of the way" through efforts to remove 3,200 staff in total. A report last week said further Xbox cuts were planned for this month, November, and January.

Development: A voluntary exit offer covers about 60,000 staff

Microsoft is now offering voluntary buyouts to 60,000 employees, roughly 25% of its overall headcount. Business Insider reported that staff in the US, Canada, India, and the UK are included, but not every team within the company is on the eligibility list. There is no current indication of whether Xbox will be affected by the buyout program.

Microsoft chief people officer Amy Coleman described the move as a new way to manage change. "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 in a memo to staff. Coleman said the program builds on what Microsoft learned earlier this year through its Voluntary Retirement Program.

Business Insider reported that 9,000 staff were offered buyouts in that earlier voluntary retirement program, and about one-third accepted.

Latest: AI spending pressure and boycott scrutiny continue

The buyout offer is being reported as Microsoft strains to direct large sums of money into AI data centers. As of writing, Microsoft remains subject to a boycott by the Boycott, Divestment and Sanctions movement over its reported ties to the Israeli military.

Current stage: A transition with unclear scope

Microsoft is now in a transition period in which office rules, layoffs, and voluntary exits are being used together. The February office mandate, the September and later Xbox reduction plans, and the buyout offer to 60,000 employees point to continued restructuring. For eligible staff, the immediate question is whether to take a voluntary exit package, while the unresolved question is whether Xbox teams will be included in the next round.

FAQ

What is Microsoft offering?

Microsoft is offering voluntary buyouts to approximately 60,000 employees across the company, which is roughly 25% of its overall headcount.

Which employees are included in the buyout offer?

Staff in the US, Canada, India, and the UK are included, but not every team within Microsoft is on the eligibility list.

Is Xbox affected by the voluntary buyout program?

There is no current indication in the article of whether Xbox will be affected by the buyout program.

What recent Xbox cuts are mentioned?

Microsoft has already carried out multiple rounds of layoffs at Xbox, including plans to remove 3,200 staff, and reports said further Xbox cuts were planned for November and January.

TagsXboxMicrosoftLayoffsAIworkforce

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