Candy Crush maker signs collective bargaining agreement, averting strike

The move comes as parent company Microsoft continues to cull its gaming divisions.

Candy Crush developer King has signed a collective bargaining agreement (CBA) to cover its Swedish employees. The Microsoft-owned company inked the deal with Unionen and Engineers of Sweden on Thursday. It comes only a day before workers were scheduled to strike and two days after the latest round of Xbox layoffs . The agreement takes effect on April 1, 2027.

Talks had been underway since May 2025. According to Kotaku , the sudden removal of a private doctor benefit in 2024 led employees to form a union club and discuss how they could have a greater say in their conditions. The long process eventually led to a strike notice on September 15, followed by mediation.

Before this week's agreement, King said it would not enter into a CBA. It argued that its existing benefits were already better for employees and that restructuring it under the CBA could leave workers worse off. Similar messaging has been used in the face of organizing by the likes of Apple , Amazon and Activision Blizzard . King management had reportedly described its existing model as "the right fit."

The unions say the agreement gives King employees more influence over their working conditions and advance information about changes that affect their work, including reorganizations. While the agreement won't prevent layoffs — something that must loom large for all Microsoft gaming workers right now — it does give staff more formal influence.

The deal also brings King closer to Sweden's norms. Engineers of Sweden says nearly nine out of 10 employees in the country already have basic job security through collective bargaining agreements.

"This is an important step for King, the gaming industry and for the Swedish model," Camilla Frankelius, head of negotiations at Engineers of Sweden, wrote 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 10 employees in Sweden have through collective bargaining agreements."