King escapes Xbox cuts – for now

King, the developer and publisher behind Candy Crush, has avoided significant job cuts in Xbox’s recent restructuring, according to multiple sources within the company. Four employees at King confirmed that no internal communication regarding layoffs has been issued, with some expressing surprise that the division escaped the major restructuring affecting other parts of Xbox.

The mobile gaming division’s reprieve is attributed to its strong financial performance. One source close to King described it as “a very profitable part of the business,” noting that while it has escaped immediate cuts, the company faces an implicit 12-to-24 month window to demonstrate progress through new game releases or improvements to its bottom line, after which restructuring may become possible.

The development comes as Xbox announced significant workforce reductions, cutting approximately 3,200 jobs across the organization. As part of the broader restructuring, King and Mojang Studios will now report directly to Asha Sharma, signifying organizational changes within Xbox despite King’s relative protection from the latest round of layoffs.

Sources