Inside King After Microsoft’s Layoffs: Sources Describe Confusion, Mandatory AI Use, and Collapsing Morale
A new wave of reports paints a grim picture inside King, the mobile studio behind Candy Crush that joined Microsoft through the Activision Blizzard acquisition. Following Microsoft’s company-wide layoffs affecting more than 9,000 roles, around 200 positions were cut at King—and multiple employees say the aftermath has been chaotic. Several sources also claim that developers were effectively replaced by AI tools they were compelled to help build, while daily use of AI has been pushed as mandatory across teams.
Morale, already battered by the layoffs, has sunk further as staff struggle to make sense of leadership’s decisions. Several employees say the people selected for layoffs did not align with stated reasons such as “heavy management layers” or “inefficient product development.” One source said performance and tenure appeared irrelevant, noting that even long-serving, high-performing employees with recent promotions were let go.
According to these sources, the explanation for who was cut never added up. Some alleged that a few employees were unexpectedly promoted to middle management shortly before July—only to be included in the layoffs later. Another source speculated that the cuts looked like a salary-first list, with higher-paid staff let go unless leadership had strong personal trust in them. In a few cases, sources claimed some of those laid off were rehired shortly afterward, further muddying the rationale.
Beyond the job cuts, multiple employees cited a deepening culture problem. They described a climate where anonymous feedback has effectively disappeared. One manager said that every question or concern had to be tied to a name, discouraging candid input and creating fear of retaliation. Several sources also criticized HR, alleging that the department often shielded problematic leaders while pressuring employees who reported issues. Staff who were outspoken about workplace problems, they said, were sometimes singled out.
Layered on top of this is a mandate to use AI daily. Sources say Microsoft set aggressive internal targets for AI adoption across King, aiming for most staff to use AI tools for general tasks last year and pushing toward near-universal daily use this year—including artists, designers, developers, and managers. While some employees accept that AI can streamline workflows, many described the mandate as a contributor to stress rather than a solution, especially when paired with headcount reductions.
Several sources believe more cuts could still be ahead. If true, it would add to a broader trend across Microsoft and the wider games industry, where rolling layoffs over the past few years have reshaped teams and projects at a relentless pace.
The allegations from inside King—confusing layoff criteria, eroded feedback channels, HR mistrust, and forced AI adoption—suggest a studio in a difficult transition. Whether these moves ultimately deliver the efficiencies leadership seeks, the short-term impact on morale, trust, and productivity may be felt for a long time across one of mobile gaming’s most recognizable brands.
