King, the developer famous for Candy Crush Saga, is reportedly cutting its workforce by approximately 200 employees, with plans to replace the roles with AI. This news has been reported by multiple international outlets, including GamesIndustry.biz and MobileGamer.biz. Industry observers view this as part of the broader wave of layoffs within Microsoft's gaming division.

The news of King's layoffs first emerged via Bloomberg in early July, with further details subsequently reported by outlets such as GamesIndustry.biz. The reports consistently state that King's leadership is reducing internal staff and plans to fill the gaps with AI tools previously developed by the company's own engineers. Additionally, it was reported that the London-based Farm Heroes Saga team will lose about half of its staff, including key management, with a new organizational structure expected to be announced in September.

King acquired Peltarion, a Swedish AI software and deep learning model developer, in 2022. At the time, King stated in a press release that it would "accelerate the use of AI and machine learning technology across King’s game platform" and secure "next-generation game design, development, and live operations capabilities." Since then, King has utilized various AI tools to streamline development.

According to an internal memo obtained by MobileGamer.biz, the company stated regarding the layoffs, "King leadership has been tasked with making the organization smaller," adding that "King will become a smaller company." It was also reported that some senior staff were placed on gardening leave ahead of the summer holidays.

Meanwhile, some outlets have reported through anonymous sources that morale among King's current employees has significantly plummeted.