Thousands Already Gone, and 60,000 to Go as Microsoft Offers a Voluntary Exit Offer Ahead of Next Layoffs Totaling Roughly 25% of Its Workforce

The FPS Review may receive a commission if you purchase something after clicking a link in this article.

Image: Microsoft

Microsoft has officially announced that a new round of layoffs is on its way and is offering staff a path to take their walking papers early before they begin. The software publisher has been busy with staff reductions not just in 2026 or 2025, but has been making major cuts since 2023 and is now looking to reduce what’s left by another 25%. At this point, one might have to wonder if the hiring process at Microsoft involves confirming if potential staff meet a compatible masochistic profile screening. Microsoft has revealed its Voluntary Exit Offer (VEO) to staff in the United States, Canada, the United Kingdom, and India.

“The Voluntary Exit Offer is new for us. We’ll learn from it. At the same time, we’ll keep helping people focus on the work that matters most, build new skills and, where it makes sense, find new opportunities across Microsoft.”

– Microsoft

The Voluntary Exit Offer is time-limited, meaning those interested must make a decision relatively soon or risk facing the chopping block. Financial support and other career planning services are included in the VEO, which Microsoft says is something new for them and that they hope to learn from it. However, after beginning with 3,200 from Xbox announced in July that are expected to continue throughout 2027, and then reportedly another 400 last week, which has led to many studio closures and cancelled games, it becomes unclear exactly what Microsoft is learning beyond the quickest way to clear the books, but folks should remember that many companies have claimed that AI isn’t replacing humans and is only being used to streamline game development processes, which should still give comfort when that last check is cashed. It remains to be seen what form Microsoft will take in 2027, but one guarantee remains: there will be a lot fewer human faces in its roster.

“There is no one-size-fits-all approach for every team or every employee. These are a few of the ways we’re trying to meet different business needs while continuing to create opportunities for our own people to grow and contribute.”

– Microsoft

Join the discussion in The FPS Review Forums...

Peter Brosdahl
As a child of the 70’s I was part of the many who became enthralled by the video arcade invasion of the 1980’s. Saving money from various odd jobs I purchased my first computer from a friend of my dad, a used Atari 400, around 1982. Eventually it would end up being a lifelong passion of upgrading and modifying equipment that, of course, led into a career in IT support.

Recent News