Layoff at King affects 47 workers in Barcelona (more than 7% of their workforce)

Yurinka

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The company that created the video game Candy Crush announces a redundancy plan for 50 workers in Barcelona

  • The CGT union accuses the multinational King, bought by Microsoft a year ago, of wanting to dismantle “entire sections” that operate from the Catalan capital

King, the video game company behind titles such as 'Candy Crush', has announced a collective redundancy plan (ERE) affecting 47 people, more than 7% of the workforce at its headquarters in Barcelona. In a statement, CGT has denounced that this collective dismissal plan is added to the "trickle down" of departures that began in October 2023, when the company was bought by Microsoft.

According to the union, with this restructuring the company intends to “dismantle entire departments” that operated from King’s offices located in Barcelona and subcontract their work to other firms or offices of the group.

According to the CGT, workers in these departments have been forced to train their replacements, workers from companies subcontracted by King who operate from countries such as India. Meanwhile, other workers affected by the ERE will hand over their responsibilities to colleagues located in the company's offices in other cities in Europe and the United States.

The union has lamented that King is carrying out a redundancy plan while it is making record profits thanks to its flagship game. By September 2023, Candy Crush Saga is expected to have surpassed $20 billion in revenue since its launch in 2012.

Activision Blizzard's King Group brings in $2 billion in revenue to Microsoft, nearly 30% of the total revenue generated by the tech giant's video game division.

The CGT points out that the ERE of King in the Spanish offices is part of Microsoft's plans to slim down the video game division in 2024. In total, the technology multinational has already decided to lay off 2,550 employees this year alone.
https://www.eldiario.es/catalunya/e...ere-50-trabajadores-barcelona_1_11726683.html

Note: ERE means "Expediente de Regulación de Empleo", name that gets in Spain a "Layoff Plan", which is a process of suspension or termination of employment relationships in certain circumstances, while guaranteeing the rights of workers.

As I remember (I may be wrong) companies have to present an "ERE" to the government or something like that whey they fire a substatial amount of people, and people fired under an ERE have special public unenployment compensation benefits.

In the context of a layoff an ERE isn't something special, when big companies make a layoff they do it using an ERE.

Note 2: they had somewhere between around 650-700 workers in Barcelona.
 
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Bigger news here is that the $2 billion revenue King generates is nearly 30% of the total gaming division's. With some simple math, you'll realize that means total annual gaming division at MS is pulling in sub-$10 billion, or the percentage in the report is wrong.

Although with the way this year's been playing out for Xbox sales, sub-$10 billion could be in the cards. Though that'd mean weaker-than-expected performance from Minecraft, WOW, F'76, ESO, and COD and, well...I'm not expecting ALL or even MOST of those to underperform. Just not realistic, so I'm just gonna bet the report overstates King's revenue or understates Microsoft Gaming's.

Tho NGL, it'd be absolutely hilarious if the number and percentage there was correct 😂
 

ethomaz

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ethomaz
You give green light to the deal.
Now you need to pay your part of it.

It is not the end 🤷🏻‍♂️

Typical Microsoft buy and kill tactics.
 
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Gods&Monsters

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The other Spanish poster made a thread about it. Is the media picking up on it?

 
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Zzero

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The other Spanish poster made a thread about it. Is the media picking up on it?

I don't think games media cares about King.
 
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Yurinka

Yurinka

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The other Spanish poster made a thread about it. Is the media picking up on it?
Here in Spain appeared later on a couple of gaming websites and a few non-gaming news places, which didn't say much.

https://www.3djuegos.com/juegos/can...ra-a-filial-barcelona-responsable-candy-crush

https://www.eurogamer.es/king-despedira-al-7-de-su-plantilla-en-espana

https://www.lavanguardia.com/dinero...gos King,informado el sindicato CGT Catalunya.

https://www.tercerainformacion.es/a...en-barcelona-tras-ser-comprada-por-microsoft/

People isn't paying a lot of attention because was "only" under 50 people out of a studio of around 670 people, and because even if the studio made the layoff in some areas is hiring in other ones. Continues being the largest gaming studio in the city after Scopely (has around 700 people as I remember).

Plus also maybe because Activision Blizzard also has Infinity Ward Barcelona (part of the CoD Warzone team for console and PC) and Digital Legends (they make CoD Warzone Mobile), which got unaffected.

The union talks about delocalization, which apparently isn't the case. Apparently they are removing redundancies, something they didn't do when acquired by Activision Blizzard and later by MS.

It is also known publicly via job offers and changes in LinkedIn of some employees that part of the studio was half rebranded as a Blizzard team. Meaning, After a long time they decide it to don't publicly rebrand that team of the studio (the studio has multiple teams) as Blizzard Barcelona because as you may figure out, having the type of expertise they have, they aren't working in let's say traditional Blizzard games as would be a StarCraft III for PC and console.

So part of the layoff may also be related to move part part of King Barcelona to that now Blizzard team from Barcelona.

Now I realized that we may be the only city with studios of all three:
  • Activision (one for console & PC, another for mobile)
  • Blizzard
  • King
 
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Dick Jones

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You'd think the profitable teams would be left to their own devices. Candy Crush is a fucking money tree that needs a bit of water. It's not a cactus, MS are fucking up royally here.
 
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You'd think the profitable teams would be left to their own devices. Candy Crush is a fucking money tree that needs a bit of water. It's not a cactus, MS are fucking up royally here.

Which makes me happy. There was a mythologic god that when he touches anything he turns it into gold. If MS existed in that mythology they would turn anything they touch into dung.
 

FatKaz

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MS are fucking up royally here.
giphy.gif


Not the layoffs just ms fucking up
 
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Yurinka

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You'd think the profitable teams would be left to their own devices. Candy Crush is a fucking money tree that needs a bit of water. It's not a cactus, MS are fucking up royally here.
As an informative note, Candy Crush wasn't made in their Barcelona office. As I remember the team from Barcelona made other games like:
  • Papa Pear Saga
  • Diamond Digger Saga
  • Scrubby Dubby Saga
  • Pyramid Solitaire Saga
  • Brick Wizard
  • Bubble Witch Saga 2
  • Bubble Witch Saga 3
  • Rebel Riders
 
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