Microsoft Gaming Division Faces Backlash as AI Replaces Employees Who Built the Tools
Earlier this month, Microsoft’s gaming division underwent significant layoffs, with reports indicating that employees at Candy Crush developer King were among the hardest hit. Many of these workers are now being replaced by the very AI tools they helped develop.
According to anonymous sources, narrative designers, UX specialists, level designers, and user research staff at King spent years training AI models to perform their jobs more efficiently. Now, those same employees are being told their positions are at risk. The copywriting team is also affected, with the London-based group working on Farm Heroes Saga expected to see a 50% reduction.
One source described the situation as disgusting, emphasizing that despite the company’s strong financial performance, efficiency and profits are being prioritized over human jobs. The source criticized the decision, arguing that removing developers while increasing feedback loops is counterproductive.
The layoffs are part of a broader wave of cuts across Microsoft’s gaming division. Initial reports suggested around 200 employees would be affected, but sources now believe the final number could be higher.
The impact extends beyond King, with employees at Halo Studios also expressing frustration. Some workers were let go shortly after receiving an email from Microsoft Gaming CEO Phil Spencer celebrating Xbox’s profitability. A developer at Halo Studios claimed Microsoft is aggressively replacing jobs with AI agents, aligning with the company’s push to integrate Copilot across its operations.
The situation highlights growing tensions as AI adoption reshapes the workforce, particularly in creative industries like gaming. Employees who contributed to AI development now find themselves displaced by the technology they helped create.
