Overview

• Microsoft cut roughly 200 positions at King in July as part of a 9,000-role reduction across its gaming divisions.
• AI-driven tools are supplanting roles in level design, user research, UX and narrative that those employees helped develop.
• Employee morale has fallen to “in the gutter” and some senior staff have been placed on gardening leave pending a September reorganization.
• King acquired AI firm Peltarion in 2022 and has used playtesting bots and automatic tweaking to refine Candy Crush levels since 2024.
• The job cuts align with Microsoft’s $80 billion AI investment for fiscal 2025 and a broader shift toward an AI-first development model.