Xbox Workers Eligible for Microsoft Buyouts Amid Major Restructuring

Microsoft has announced a Voluntary Exit Offer program available to 60,000 workers across the company, representing more than 25% of its entire workforce. Xbox employees are among those eligible to participate in the initiative.

The program is designed to allow workers already considering departure to leave with a severance package. Those who accept will receive benefits similar to a standard severance, though specific terms have not been disclosed. In April, Microsoft offered a similar Voluntary Retirement Program that drew acceptance from approximately 33% of eligible workers.

Xbox is one of several divisions affected by the restructuring, alongside Windows, Copilot, and finance teams. Employees in data centers, sales, marketing, cyber security, and quantum computing are not eligible for the offer.

The announcement comes as Xbox undergoes significant changes under CEO Asha Sharma, including mass layoffs, studio closures, and game cancellations. July saw layoffs affecting nearly 5,000 people, with major cuts at Xbox. Additional layoffs are expected in the coming months.

This restructuring occurs despite strong financial performance for Microsoft. The company reported $90 billion in revenue, up 18%, and $35.8 billion in profit, up 22%, for the latest period. Microsoft is investing heavily in artificial intelligence initiatives, which has drawn scrutiny from investors regarding capital expenditure levels.

CEO Satya Nadella addressed the apparent contradiction between layoffs and financial success in a memo, describing it as "the enigma of success." Microsoft will release its next earnings report on October 28.