Microsoft Reportedly Replacing 200 Laid-Off King Employees with AI Agents

Microsoft’s AI Shakeup at King: Replacing 200 Laid-Off Employees amid Criticism

King, the Microsoft-owned gaming company behind Candy Crush, is undertaking significant workforce reductions. Reports indicate Microsoft is replacing approximately 200 laid-off King employees with AI tools, a move that has drawn strong criticism. Microsoft acquired King and Activision Blizzard in 2023. This year, Microsoft plans to invest $80 billion in AI technology, an amount greater than its combined recent gaming acquisitions. King has a long history of developing and utilizing AI tools in its games, including Candy Crush. In 2024, Sahar Asadi, King’s AI Labs Director, discussed at GDC how the company employs AI for playtesting and automatic game adjustments. While King has laid off approximately 200 employees, reports suggest the total number affected could be as high as 10% of King’s workforce. The cuts impact offices in London, Barcelona, Stockholm, and Berlin, and are expected to conclude by September. King has placed some employees on a temporary paid work hold. The company is currently in discussions with its union, though progress has been challenging.

Microsoft’s AI-Driven Layoffs and Morale Plummet at King

The layoffs extend beyond entry-level positions, affecting mid-level managers, UX designers, testers, analysts, level designers, and narrative designers. For example, King is dismissing half of the London-based Farm Heroes Saga team, totaling 50 employees. While the primary stated goal is to simplify King’s management structure, some speculate that certain employees are being let go due to public criticism of the company. According to individuals familiar with the situation and former Microsoft employees, the tech giant is replacing human roles with AI tools, some of which were developed by the very workers who were laid off. AI tools have now replaced most level design work at King. Similarly, King is phasing out its copywriting team entirely, as AI tools crafted by those individuals are now handling their tasks. An internal survey conducted by King reveals staff morale is at an all-time low. This decline follows a period of generally low but consistent employee turnover and already low morale prior to the recent layoff announcements. The integration of company-developed AI tools to replace human roles has generated considerable disapproval from current and former employees.

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