King Hit by Microsoft Layoffs Amid AI Shift

Gaming Giant Cuts Staff, Including AI Developers

King, the creator of Candy Crush Saga, is experiencing significant staff reductions as part of broader layoffs impacting Microsoft, its parent company. The cuts have hit hard at King’s studios, impacting key roles and even those instrumental in developing the very AI technologies that may now be influencing these decisions.

Mass Departures at King Studios

Around 200 employees were reportedly let go from King, leading to the cancellation of a specific project and a scaling back of studio operations. Reports indicate that mid-level supervisors, UX designers, and narrative copywriters were primary targets. Further exacerbating the situation, many level designers and UX experts, alongside nearly half of the London-based Farm Heroes Saga team, also face unemployment.

The AI Irony: Developers Replaced by Their Creations

A striking element of these layoffs is that many of the affected employees were actively involved in building and training artificial intelligence systems designed to automate their own tasks. One anonymous employee expressed the disillusionment, stating,

“Most of the level design teams have been laid off, which is crazy because they have spent months developing tools to speed up levels, and now these AI tools are basically replacing these teams, and similar situations have happened to copywriting teams because we now have AI tools, and it is developed by those who have been laid off.”

The sentiment continues, highlighting the perceived shortsightedness of the strategy.

“The fact that AI replaces human resources is really disgusting. Even if the overall operation is good, the company needs efficiency and profit.”

The employee further elaborated on the company’s direction, “If we want to be able to move into a positive cycle, it would be stupid to lay off developers. What we need is more manpower rather than more supervisors.”

Microsoft’s AI Investment and Industry Ripples

This move by King follows its earlier signals of transitioning into an “AI-first” company, including the acquisition of Swedish AI firm Peltarion in 2023. The broader context is Microsoft’s substantial investment in artificial intelligence, which has been cited as a factor in its global workforce reductions, affecting approximately 9,000 individuals. Major studios under Microsoft, including Activision Blizzard, Blizzard Entertainment, and Xbox teams, have also been impacted. Notable cancellations include the new “Perfect Dark” project and Rare’s “Everwild,” with Blizzard’s “Warcraft Corps” ceasing updates, underscoring the wide-reaching effects of these strategic shifts.

The tech industry is increasingly exploring AI integration, with figures like OpenAI CEO **Sam Altman** suggesting AI could eventually make many jobs redundant. For instance, a 2023 report by Goldman Sachs estimated that generative AI could impact up to 300 million jobs globally, potentially automating a significant portion of administrative and even creative tasks (Goldman Sachs, 2023).