Summary
- King, the developer behind Candy Crush and owned by Microsoft, recently laid off approximately 200 employees as part of broader Microsoft cutbacks.
- Many of the laid-off staff, including level designers, UX researchers, and narrative writers, are reportedly being replaced by AI tools they helped create to streamline their work.
- Internal memos emphasise restructuring towards fewer employees and more AI usage to increase efficiency and reduce layers of management.
Layoffs and AI Replacement at King
In early July 2025, Microsoft initiated layoffs affecting around 200 employees at King, the studio known for Candy Crush. Sources reveal that many of those laid off worked as level designers, user experience researchers, and narrative writers.
Ironically, these same employees had spent recent years developing and training AI systems intended to help streamline game development tasks. Now, these AI tools are being used to replace the very workers who built them.
An internal memo from Microsoft outlined that the layoffs aimed to create a “simpler” organisational structure with fewer layers and stakeholders, emphasising the adoption of “many more AI tools” to achieve this. This has led to unease among remaining staff who fear for the future of creative roles and question how AI-driven workflows will affect game quality and innovation.
Industry Impact and Reactions on AI in Game Development
The decision to replace skilled employees with AI tools has sparked significant scepticism and criticism within the gaming industry and among fans. Industry insiders worry about the loss of human creativity and nuance in game development.
While Microsoft and King have publicly embraced AI as a means to boost efficiency, the sudden reduction of talented teams raises questions about balancing technological advancements with workforce health.
These layoffs come amid widespread cuts at Microsoft’s gaming division, including cancelled projects like Perfect Dark and studio closures such as The Initiative.
