Microsoft is offering voluntary severance packages to approximately 60,000 employees—about one quarter of its total workforce—as part of a new cost-cutting initiative. Staff who choose to leave will receive a severance package in return.
Business Insider reports that the programme is being described internally as a Voluntary Exit Offer. Microsoft Chief People Officer Amy Coleman told employees the company would use the initiative to learn which approaches best meet different business needs, while continuing to support skills development and internal opportunities where appropriate.
Xbox remains under pressure
Microsoft has not yet clarified which divisions or departments will qualify for the latest offer. Xbox is among the company’s most prominent businesses to have experienced repeated annual job cuts in recent years.
The gaming division has previously announced plans to eliminate 3,200 roles by June 2027 as part of an ongoing Xbox “reset”. The changes are being closely watched across the wider arcade and gaming industry, where staffing decisions at major platform holders can affect development, publishing and hardware partnerships.
A second voluntary departure scheme
This is Microsoft’s second voluntary workforce-reduction programme of the year. In spring, the company introduced a Voluntary Retirement Program for veteran employees, allowing eligible staff to access severance packages and certain vested stock options earlier than planned.
That earlier offer was made available to 9,000 employees, with approximately one-third accepting it, according to the same report. For arcade fans tracking the broader games business, developments at major manufacturers and platform owners can provide useful context when considering how to choose an arcade machine or following new arcade industry videos.
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