Microsoft is offering voluntary exit packages to as many as 60,000 employees worldwide, including staff in its Xbox gaming division, as the technology giant reassesses its workforce while pouring billions of dollars into AI.

The programme could affect more than a quarter of Microsoft’s global workforce of about 223,000 employees, although the company expects only a proportion of eligible workers to accept the offer.

The Voluntary Exit Offer is available to eligible employees in the US, the UK, Canada and India, covering selected divisions including Xbox, Windows and Devices, Copilot, artificial intelligence, finance and human resources.

According to the Financial Times, the package is equivalent to Microsoft’s standard severance arrangements, rather than the more generous retirement offer made earlier this year. Eligible workers can receive payments based on their salary, employment level and length of service, along with continued stock vesting, temporary healthcare coverage and career transition assistance.

The offer extends to employees at vice-president level and below in participating teams, although some divisions and roles are excluded. Microsoft has not set a target for the number of employees it wants to leave.

Microsoft chief people officer Amy Coleman said the initiative would give eligible employees considering a future outside the company another option, while allowing participating organisations to adapt to changing workforce requirements.

The company expects fewer workers to accept the latest offer than took up its earlier voluntary retirement programme. Around 30% of approximately 8,750 eligible US employees accepted that offer, which was aimed at longer-serving staff.

The new programme comes after Microsoft announced 4,800 job cuts in July, including significant changes across its gaming operations. The Xbox division has been undergoing restructuring as Microsoft seeks to improve returns from its gaming investments.

The latest offer is voluntary and should not be interpreted as a plan to eliminate all 60,000 positions. However, it provides another way for Microsoft to reshape its workforce without relying exclusively on compulsory redundancies.

The move also comes as the company faces growing scrutiny over its spending on AI infrastructure.

Microsoft has forecast capital expenditure of about US$175 billion for 2026 and has committed to substantial data-centre capacity as it expands its AI and cloud computing businesses.

The company has also reportedly signed around US$130 billion in new data-centre leases.

Microsoft has said the voluntary exit programme reflects changing business needs rather than a direct effort to finance AI infrastructure. The company continues to recruit in strategic areas, even as it adjusts staffing elsewhere.

For Xbox, the latest offer raises further questions about the future shape of Microsoft’s gaming business, although the eventual impact will depend on how many employees accept the packages and which teams are affected.