Microsoft Offers Buyouts to 60,000 Staff, Xbox and India Included

Microsoft has opened a Voluntary Exit Offer to employees in Canada, India, the UK and the US, and Xbox is one of the teams taking part. The company announced the offer on 26 October 2026. CNBC reports that about 60,000 people, roughly 27% of the workforce, are eligible. The timing matters for gamers too: Microsoft reports its first-quarter results, including Xbox revenue, at 3:00 a.m. IST on Thursday 29 October.

This is a voluntary programme, not a layoff, and nobody has to accept it. But it comes after a year of cuts at Xbox, and reports say more Xbox layoffs are planned. Below we separate what Microsoft has confirmed from what's been reported, and explain what it could mean for players in India.

What Microsoft announced

In a post on the Official Microsoft Blog, Amy Coleman, Executive Vice President and Chief People Officer, introduced a "time-limited" Voluntary Exit Offer. It's open to eligible employees at level 70 and below in participating teams in Canada, India, the UK and the US. The offer includes financial support and career-planning resources, and eligible staff receive the details of their own offer by email.

Microsoft says not every organisation is taking part, and the blog doesn't give a headcount. That figure, about 60,000 eligible out of roughly 223,000 employees, comes from CNBC. CNBC also reports that employees have until early December to decide, and that people who accept will leave on 31 December. According to The Verge, Microsoft's internal HR site says the offer isn't based on age, tenure or performance.

Which teams are included, and where Xbox fits

Microsoft's public post doesn't list the teams taking part. The Verge reports this breakdown, citing sources and internal documents, and GameSpot separately confirms, citing Bloomberg, that Xbox staff are eligible:

Source: The Verge (26 Oct 2026), citing sources familiar with the plan. Microsoft hasn't published this list.

For Xbox, this offer comes on top of other reported cuts. The Verge's Tom Warren reports that Xbox layoffs expected this month aren't happening in October but will come later. The Verge also cites a Fortune report that Xbox CEO Asha Sharma is planning new rounds of layoffs. Microsoft hasn't confirmed any further Xbox job cuts.

Key dates in IST

Sources: Microsoft blog; Microsoft Investor Relations; CNBC; The Indian Express. IST is UTC+5:30, and the webcast starts at 21:30 UTC.

Infographic: NextPlayIntel, built from Microsoft, CNBC, The Verge and The Indian Express reporting.

What it means for India

India is one of only four countries in the programme. The Indian Express reports that Microsoft employs about 23,000 people in India and that eligible staff there have until 1 December 2026 to decide. It also reports, without official confirmation, that the package includes one month's base salary for each year of service plus health insurance, and that people who accept will leave by the end of December. Not every Microsoft employee in India is eligible. The offer covers only participating teams at level 70 and below.

A Microsoft spokesperson told The Indian Express that the company's commitments in India still stand. These include a $20.5 billion investment in the country between 2025 and 2029 and a goal of training 20 million people in AI skills by 2030. Reports also note concerns among employees on H-1B visas in the US, whose immigration status depends on their job.

For gamers in India, nothing changes right away. Microsoft hasn't announced any changes to Xbox hardware, Game Pass or game releases because of the offer. You can still buy Xbox consoles and Game Pass, and the Game Pass line-up is still being updated. The bigger question is what Xbox plans next, which tonight's earnings could answer.

Tonight's results: what to watch for Xbox

Microsoft confirmed on its Investor Relations events page and on Microsoft Source that it will release fiscal 2027 first-quarter results (July to September 2026) after the US market closes on Wednesday 28 October. The webcast with Satya Nadella and CFO Amy Hood starts at 2:30 p.m. Pacific, which is 3:00 a.m. IST on Thursday. The press release usually comes out shortly before the call.

Here's the last quarter, for comparison. In fiscal 2026 Q4, Microsoft reported $90.0 billion in revenue, up 18%. Xbox content and services revenue fell 10%. The company also noted severance costs and impairment charges in its Xbox business.

Chart: NextPlayIntel. Data: Microsoft Investor Relations, FY26 Q4 release.

• Xbox content and services growth: whether last quarter's 10% fall continues.

• Hardware revenue: how many consoles sold in the run-up to GTA VI and the holiday season.

• Severance or restructuring costs: any money set aside for the exit programme.

• Capital spending: CNBC says analysts expect AI capital spending above $50 billion this quarter. That spending is the main reason Microsoft is cutting costs elsewhere.

Background: a year of cuts at Microsoft

This is Microsoft's third big workforce move of 2026. In April it ran a Voluntary Retirement Program for long-serving US staff, which CNBC says more than 30% of eligible people accepted. In July, Microsoft laid off about 4,800 people, with sales and Xbox among the hardest-hit teams. The new offer is bigger in scope but voluntary, and how many people actually leave depends on how many accept.

How to follow the news: step by step

1. Set an alarm for 3:00 a.m. IST on Thursday 29 October if you want to watch the webcast live on Microsoft's Investor Relations page. If not, the press release and slides stay online afterwards.

2. Look for the line about Xbox content and services revenue in the press release. It shows how Game Pass and game sales are doing.

3. Read Xbox Wire for any official statements about studios or projects.

4. Treat leaks about specific studio closures with caution until Microsoft or the studio confirms them.

What's not confirmed

• The 60,000 figure is from CNBC. Microsoft hasn't published a number.

• The list of participating teams comes from The Verge's sources, not Microsoft's public post.

• The India package terms and 1 December deadline are reported by The Indian Express.

• Future Xbox layoffs are reported (The Verge, Fortune) but not confirmed by Microsoft.

• Effects on specific games or studios: Microsoft hasn't announced any.

Sources

• Introducing a Voluntary Exit Offer — Official Microsoft Blog

• FY27 Q1 earnings call — Microsoft Investor Relations

• Earnings release date — Microsoft Source

• FY26 Q4 results — Microsoft

• CNBC

• The Verge

• GameSpot

• The Indian Express (explainer)

• The Indian Express (report)

• The Verge — July 2026 layoffs