King signed a collective bargaining agreement with Swedish unions Engineers of Sweden and Unionen, ending a labour dispute that had been heading toward a September 25, 2026 strike at the Candy Crush studio's Malmo and Stockholm offices.

Negotiations between the Microsoft subsidiary and its unionised workforce began in May 2025 and reached an impasse earlier this year. The deal was finalised hours before the industrial action was scheduled to start.

What does the agreement cover?

The agreement gives King's roughly 500 employees a formal structure for influencing workplace decisions, including reorganisations and layoffs. Engineers of Sweden, which represents around 100 of those workers, framed the document as "a floor not a ceiling" — a baseline that employers can exceed but cannot undercut.

Under the deal, employees gain the right to organise and to receive information "in good time" before any workplace-affecting changes. Negotiation assistance is reserved for union members, and the baseline conditions apply to all staff regardless of membership status.

Why it matters at King

"This is an important step for King, the gaming industry and for the Swedish model," said Camilla Frankelius, head of negotiations at Engineers of Sweden, in a press release. "We look forward to good cooperation with the company going forward and to the employees receiving the basic job security that almost nine out of ten employees in Sweden have through collective bargaining agreements."

Frankelius added: "This shows the power that comes from employees joining forces in their dedication for change and improvement. Without the fantastic engagement of our members at King, it would have been much more difficult to reach this agreement."

The arrangement brings King into a system that Swedish unions say covers close to 90% of the country's workforce.

Where this sits inside Microsoft

The agreement lands days after parent company Microsoft cut further positions inside its video game division. Engineers of Sweden's stated right to early information on reorganisations means future headcount changes at King's two Swedish offices will arrive with prior notice to workers.

Key operational points for studios:

• Baseline conditions apply across King's full Swedish headcount, not only to union members
• Layoffs and reorganisations require prior information sharing with union representatives
• Individual employer benefits can exceed the agreement but cannot fall below it
• Engineers of Sweden retains roughly 100 members at King; Unionen's member count at the studio was not disclosed

What changes day-to-day

For King, the immediate production impact is limited: live operations on Candy Crush continue, and no title has been pulled from release schedules. What the deal changes is the formal channel through which studio-level staffing and structural decisions will now flow — and the timeline on which King's leadership must communicate them.

Watch Microsoft's next earnings call for any commentary on Swedish labour cost structures and how the agreement maps onto the company's wider European studio footprint.