The Xbox division and its studios have faced turbulent times after Microsoft laid off over 9,000 employees across all its business units. One of the teams affected was King, the developer behind the massively popular Candy Crush franchise. Reports indicate that the tech giant cut around 200 King employees, allegedly replacing some roles with AI-powered tools developed internally by Microsoft.
Unfortunately, the bad news for King might not be over. A new report suggests the studio’s morale is at an all-time low, with insiders fearing more layoffs in the near future. Employees have also raised concerns about unfair severance packages and unrealistic performance goals imposed by Microsoft.
King, Developer of Candy Crush, Could Face Further Staff Cuts
King, best known for its blockbuster mobile hit Candy Crush Saga, became part of Microsoft after the Activision Blizzard acquisition. While Candy Crush remains one of the most profitable mobile games ever, King was not spared from the recent wave of layoffs.
According to a report from MobileGamer.biz, the layoffs deeply affected employee morale. Some workers have taken legal action to fight for fairer severance pay, while others accepted Microsoft’s offers despite believing they were unlawful.
“We all consulted lawyers, and they were very clear that the proposals were not legal. But in the end, I signed simply because I feared getting even less, and I don’t think we can win against a corporation like Microsoft,” shared one anonymous employee.
Employees also allege that layoffs were made without regard for job performance, meaning even highly regarded team members with years of contributions to Candy Crush were let go.
A former King manager suggested the studio’s workforce is “bloated,” making additional reductions likely. According to them, “there will definitely be more layoffs.”
AI Mandates and Unrealistic Targets Fuel Concerns
Another major issue is Microsoft’s push for AI adoption across King’s teams. Sources claim the company expects daily use of AI tools, not just for developers but also for artists, designers, and managers. However, there is internal resistance, with King leadership expressing doubts about the efficiency and appropriateness of Microsoft’s AI strategy.
The report also highlights the unrealistic expectations of King’s Annual Operating Plan (AOP), particularly regarding Candy Crush’s performance targets. Employees fear the company is setting them up to fail.
“That said, the AOP they forecasted wasn’t realistic, so the question is: were we doomed to fail from the start?”
What’s Next for King and Candy Crush?
As Microsoft continues its restructuring and AI initiatives, uncertainty looms over King’s future. If additional layoffs happen, they could impact the long-term development of Candy Crush and other King projects.
Do you think Microsoft’s AI-driven strategy will help or hurt King? Should Candy Crush fans be worried? Share your thoughts below.
