King avoids major Xbox layoffs, gains Microsoft Casual Games
King has largely escaped the latest round of 268 Xbox job cuts and will now oversee Microsoft Casual Games, according to an Xbox blog.
Xbox has announced 268 job cuts across its first-party studios, XGS management, and central functions. According to an Xbox blog from executive Matt Booty, this marks the division being three-quarters of the way through a restructuring plan announced in July.
King, the maker of Candy Crush Saga, appears to have dodged the brunt of these latest layoffs. The mobile games giant has also expanded its responsibilities. Its remit now includes Microsoft Casual Games, the team behind evergreen PC and mobile titles like Solitaire Collection, Minesweeper, and Mahjong.
Restructuring and Studio Changes
The reorganization and cuts have mostly impacted Xbox's console and PC-focused first-party studios. Under the new structure, Activision will oversee studios including Rare and World's Edge, and will lead development on the next Halo game. Bethesda will now absorb Obsidian, while Playground Games and Turn 10 are set to merge.
Xbox confirmed that UK-based Ninja Theory will likely close. The company also divested Double Fine, Compulsion Games, and Undead Labs. These moves follow the July announcement that King and Mojang would report directly to Xbox boss Asha Sharma.
"These two studios have increasingly become platforms and are our largest by monthly active players," Sharma said in a blog at the time. "They bring critical geographic, demographic, and differentiation to Xbox."
King's Recent History and Labor Dispute
King's current position contrasts with its own recent history of job cuts. Last summer, the company laid off around 200 employees, representing roughly 10% of its workforce. Sources claimed to MobileGamer.biz that about half of those cuts were in the Stockholm office, with 30 in Barcelona and the rest from London, Berlin, and full-time remote workers.
Some sources alleged that some of the laid-off staff were effectively being replaced by the AI tools they had helped create and train. King refuted claims that AI had replaced jobs in a statement this past March.
Separately, King's Swedish offices are facing labor action. Staff at its Stockholm and Malmö locations are set to go on strike at 5 a.m. This Friday, September 25th. This follows King management's rejection of a collective bargaining agreement that had been under negotiation for a year.
Previous reports from MobileGamer.biz have also covered alleged layoff lawsuits, claims of toxic management, and low morale at the company. One insider, however, countered that many King staff were 'pampered' and overly-sensitive.
