Microsoft Laid Off 200 King Employees and Replaced Them With AI They Helped Create

Microsoft Laid Off 200 King Employees and Replaced Them With AI They Helped Create

New report reveals what’s happening inside the Candy Crush studio after Microsoft’s latest job cuts

Por Pedro Pérez Cesari el 17 de July de 2025

The wave of layoffs at Microsoft was initially attributed to its aggressive investments in artificial intelligence, aimed at boosting investor confidence. But new details reveal a deeper, more unsettling reality.

According to a report by MobileGamer.biz (via VGC), Microsoft terminated around 200 employees from King, the studio behind Candy Crush Saga. The affected roles include middle management, UI developers, writers, and even level designers.

What makes this case striking is not just the number of jobs lost—but how they were lost. Many of the employees let go had spent months developing AI tools to speed up game design. Ironically, those same tools are now replacing them.

“Most of the level design team was wiped out—which is insane because they spent months shaping AI tools to create levels faster. Those same tools basically replaced them,” said an anonymous source. “The writing team is gone too, even though they created the AI systems we now use. The fact that AI is replacing the very people who built it is disgusting. It’s all about efficiency and profit, even though the company is doing just fine overall.”

More Layoffs Could Be Coming at King

The report adds that the layoffs at King may not be over. Employees working on Farm Heroes Saga were recently notified of potential cuts, again targeting teams in level design, UI development, and writing.

This move aligns with statements made by King’s CTO, Steve Collins, in 2023, where he shared that the company aimed to function primarily with AI in the near future.

Microsoft’s AI push continues to stir controversy—not just internally but across the tech landscape. There are growing concerns among its partners about the tension between Microsoft and OpenAI, with whom they have a contract until 2030. Meanwhile, talent continues to migrate to Meta, and competitors are rapidly advancing their own AI efforts.

To stay competitive, Microsoft has invested over $80 billion in AI, even if it means cutting jobs in other divisions.

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