Candy Crush maker dodges walkout with last-minute labor deal
King signed a collective bargaining agreement with Unionen and the Engineers of Sweden hours before planned strikes at its Stockholm and Malmo offices. The deal, ending over a year of negotiations, gives employees more influence over work conditions and advance notice of changes. The unions welcomed the move as a step toward secure, predictable employment in the games industry.
The strike notice, issued September 15, followed a year of stalled talks. The agreement covers roughly 100 engineers among King's 550 Stockholm and Malmo staff, granting rights to organize, influence work conditions, and receive timely warnings about operational changes. This follows a turbulent period: about 200 layoffs in July 2025, including a 12% Barcelona cut and reported dismissal of narrative and UX writing teams.
The deal arrives amid a wider Xbox restructuring. King escaped most of July's cuts, was promoted to report directly to Xbox boss Asha Sharma, and expanded to manage Microsoft Casual Games. Meanwhile, 268 layoffs hit other studios. The agreement contrasts with earlier allegations of toxic management and lawsuits, though King denied AI replacing jobs.
This agreement could serve as a template for labor relations in the games industry, where job security is often fragile. It may encourage other studios, especially those with Swedish operations, to engage with unions, potentially reducing sudden layoffs and giving workers a stronger voice in restructuring. For society, it could normalize collective bargaining in tech, influencing how companies balance innovation with employee protections. However, its direct impact is likely confined to Sweden's robust labor framework, so broader global change may be slow.