Microsoft’s Candy Crush developer King is replacing approximately 200 laid-off employees with artificial intelligence tools that those same workers helped create, according to multiple sources familiar with the matter. The layoffs, announced earlier this month, mark the latest phase of Microsoft’s aggressive pivot toward AI-driven operations across its gaming division.
According to a report by MobileGamer.biz, many level designers, user experience staff, and narrative writers at King spent years building and training AI systems designed to streamline their work. These tools are now being deployed to perform their former roles, sources told the outlet.
Staff Replaced by Their Own Creations
”Most of level design has been wiped, which is crazy since they’ve spent months building tools to craft levels quicker,” one King staffer told MobileGamer.biz. “Now those AI tools are basically replacing the teams. Similarly the copywriting team is completely removing people since we now have AI tools that those individuals have been creating.”
The London-based Farm Heroes Saga team faces particularly deep cuts, with approximately 50 people—roughly half the team—set to depart. The layoffs also target middle management, user research staff, and quality assurance personnel across King’s offices in London, Barcelona, Stockholm, and Berlin.
An internal memo obtained by MobileGamer.biz explained that King aims to create “fewer layers, fewer overlapping remits, fewer hours spent on alignment, fewer people in meetings, fewer stakeholders for every project.” The document specifically cited “unlocking many more AI tools” as key to achieving growth with a smaller workforce.
Microsoft’s Broader AI Strategy
The King layoffs are part of Microsoft’s larger workforce reduction affecting approximately 9,000 employees across its gaming division in July 2025. This represents the fourth round of layoffs in 18 months, coinciding with Microsoft’s commitment to invest $80 billion in AI infrastructure during the current fiscal year.
The cuts come despite Microsoft’s parent company reporting $171 billion in profit last year. Industry analysts suggest the layoffs help fund Microsoft’s AI ambitions by reallocating resources from salaries to technology infrastructure.
Internal surveys indicate morale at King has reached an all-time low, with one employee describing it as “in the gutter.” Sources claim some staff members are being targeted for expressing dissatisfaction with company processes or leadership decisions.
”The fact AI tools are replacing people is absolutely disgusting but it’s all about efficiency and profits even though the company is doing great overall,” one King employee told MobileGamer.biz. “If we’re introducing more feedback loops then it’s crazy to remove the developers themselves, we need more hands and less leadership.”
