King Replaced 200 Laid-Off Employees With AI Tools They Developed
Microsoft laid off approximately 200 employees from King, the Candy Crush developer, in July 2025. Reportedly, the laid-off staff—including level designers, user researchers, and copywriters—are being replaced by AI tools that they themselves had built and trained.
What happened
Microsoft laid off approximately 200 employees from King, representing 10% of the studio's workforce, as part of broader redundancies affecting 9,100 employees across Microsoft in July 2025.
The layoffs primarily affected middle management, user experience staff, and narrative copywriters. Around 50 employees, including some leadership from the London-based Farm Heroes Saga team, were placed on gardening leave ahead of their September departure.
According to reports from anonymous King staff members, the laid-off employees—including level designers, user researchers, and copywriters—are being replaced by AI tools that they themselves had built and trained over preceding months.
Reported impact
Staff members reported that level designers had spent months building tools to craft game levels more quickly, which are now replacing the teams. Similarly, the copywriting team was reportedly completely removed because AI tools created by those individuals can now perform the work.
An internal employee survey revealed morale at King was already low before the cuts, with sources stating that morale is now 'in the gutter' following the layoffs.
Index analysis
King had been investing in AI tools for game development for several years, including the acquisition of AI firm Peltarion in 2022. In June 2024, King's head of AI Labs described AI playtesting bots as 'assistive tools' and 'co-pilots' for designers, emphasizing the need to retain human designers.
Governance controls
Some senior staff were placed on gardening leave until September 2025, when a new organizational chart was to be announced. Many employees were reportedly in limbo over the summer, unsure of whether their jobs would be cut as discussions continued between King leadership and unions across offices.
Classification
Sources and evidence
Sources not yet published
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