The King toxic leadership scandal has sent shockwaves through the gaming industry as disturbing details emerge about the Candy Crush maker’s workplace culture. What started as routine layoffs in July 2025 has evolved into a comprehensive exposé of toxic management, arbitrary job cuts, and a broken ethics system that protects problematic leaders while punishing employees who speak out.
The Devastating July 2025 King Layoffs
On July 2, 2025, King employees received an ominous invitation to a mandatory “Important Kingdom Update” meeting. What followed was the announcement that 200 staff members would lose their jobs – a decision that has sparked both legal challenges and serious questions about Microsoft’s management of its gaming subsidiaries.
The layoffs weren’t based on performance metrics or business needs. Instead, according to multiple sources, King simply “listed every employee, sorted by salary and then fired them top down, only skipping over people they trust.” This arbitrary approach meant that long-term employees with stellar performance reviews were eliminated while underperformers in leadership positions remained untouched.
Legal Battles Over Questionable Severance Packages
The King toxic leadership scandal deepened when affected employees began consulting lawyers about their severance agreements. Multiple staff members reported that legal counsel deemed the proposed packages “weren’t legal,” leading to ongoing legal action against Microsoft.
One employee shared their difficult decision: “We all took lawyers and they were pretty clear that the proposals weren’t legal. But I decided in the end to sign, simply because I fear getting even less and I don’t believe we can win against a corporation like Microsoft.”
5 Shocking Workplace Failures Exposed
1. Performance Reviews Completely Ignored
King uses a five-point performance scale: ‘off track’, ‘more to do’, ‘good work’, ‘ahead of the game’, and ‘game changer’. However, these ratings played no role in layoff decisions, with high performers eliminated alongside struggling employees.
2. Haphazard Rehiring Within Weeks
The chaotic nature of the cuts became evident when King rehired some employees just weeks after laying them off, highlighting the lack of strategic planning behind the workforce reduction.
3. Protected Toxic Managers
Multiple sources revealed that managers investigated repeatedly by the ‘Right Way2Play’ workplace conduct team faced zero consequences. HR consistently protected toxic leaders while pressuring employees who filed complaints.
4. Elimination of Anonymous Feedback
Microsoft’s integration removed anonymous feedback systems, creating a climate of fear where employees couldn’t safely voice concerns about leadership without career repercussions.
5. Arbitrary Team Cuts Despite Success
The Farm Heroes Saga team faced significant cuts despite being one of the few King games meeting their Annual Operation Plan targets, while underperforming titles retained more staff.
Microsoft’s Mandatory AI Push Backfires
The King toxic leadership scandal extends beyond layoffs to Microsoft’s aggressive AI mandate. The company requires 100% daily AI usage across all roles – artists, designers, developers, and managers must incorporate AI tools into their daily workflows.
However, this top-down approach has failed spectacularly. “AI adoption is very low apart from ChatGPT,” reported one source, noting that “King leadership is in general quite AI skeptic.” The mandate appears driven more by Microsoft’s massive AI investments than practical workplace needs.
The Human Cost of Toxic Leadership
Beyond the corporate machinations, the King toxic leadership scandal has taken a severe human toll. Sources describe widespread burnout, with some employees requiring medical leave due to the toxic work environment.
“Candy Crush and King in general is a very very toxic environment,” explained one insider. “Individual contributors are talented and nice – the toxicity comes from the leadership team. So, yes, Microsoft and AI is one cause but the toxicity is endemic of the leadership team at King.”
More Cuts Expected as Crisis Continues
The King toxic leadership scandal shows no signs of resolution, with management sources suggesting additional layoffs are inevitable. One manager described King’s workforce as “bloated” and predicted: “There will definitely be more layoffs.”
This ongoing instability, combined with the toxic work culture, has created a perfect storm of low morale and legal challenges that could have lasting impacts on one of gaming’s most profitable franchises.
Frequently Asked Questions
What caused the King layoffs in July 2025?
The layoffs were primarily driven by Microsoft’s mandate to reduce King’s workforce, but they were implemented arbitrarily based on salary levels rather than performance metrics or business needs.
Are King employees taking legal action over the layoffs?
Yes, multiple employees have consulted lawyers and some are pursuing legal action, claiming their severance packages contained illegal terms and the layoffs violated employment law.
How does Microsoft’s AI mandate affect King employees?
Microsoft requires all King staff to use AI tools daily, with a target of 100% adoption. However, this mandate has largely failed, with low adoption rates and skepticism from King leadership.
What makes King’s workplace culture toxic?
The toxic culture stems from protected managers who face no consequences despite ethics investigations, elimination of anonymous feedback systems, and HR policies that punish whistleblowers while protecting problematic leaders.
Will there be more layoffs at King?
According to internal sources, additional layoffs are expected as Microsoft continues to pressure King to reduce what management considers a “bloated” workforce.
How did the layoffs affect successful King games?
Paradoxically, teams working on successful games like Farm Heroes Saga faced significant cuts while underperforming titles retained more staff, suggesting the cuts weren’t based on business performance.
What happened to employees who were laid off and rehired?
Some employees were rehired within weeks of being laid off, highlighting the chaotic and poorly planned nature of the workforce reduction process.
The Future of King Under Microsoft
The King toxic leadership scandal represents more than just corporate mismanagement – it’s a cautionary tale about what happens when profit-driven decisions override basic workplace decency and strategic thinking. As legal battles continue and more layoffs loom, the gaming industry watches to see whether Microsoft can address the systemic issues plaguing one of its most valuable acquisitions.
For King employees, the message is clear: the company that built its fortune on addictive mobile games has created an equally toxic workplace culture that prioritizes corporate politics over both employee welfare and business success. Whether meaningful change will come remains to be seen.