King Signs Labor Agreement in Sweden, Averting Strike at Candy Crush Developer

King, the Microsoft-owned developer behind Candy Crush, signed a collective bargaining agreement with Swedish labor unions on Thursday, averting an employee strike scheduled to begin one day later, according to a report by Engadget (https://www.engadget.com/2269263/candy-crush-maker-signs-collective-bargaining-agreement-averting-strike/).

The contract covers King's Swedish workforce and will take effect on April 1, 2027. The agreement was reached with the unions Unionen and Engineers of Sweden two days after Microsoft initiated another round of layoffs across its Xbox gaming units.

Negotiations between the studio and labor representatives had been underway since May 2025. Union organizing gathered momentum in 2024 after King removed a private doctor benefit, leading workers to form a union club to seek greater input on workplace conditions. The dispute culminated in a strike notice filed on September 15, which led into mediation.

Prior to the settlement, King management had resisted signing a collective bargaining agreement, arguing that its existing internal benefits were superior and that restructuring under a formal labor contract could leave employees worse off. Management had previously described its established benefits model as "the right fit."

Under the new agreement, King employees gain advance notification regarding organizational changes and reorganizations, alongside formal influence over working conditions. While the agreement does not prohibit future layoffs, union officials noted that it establishes baseline protections aligned with Swedish labor standards, where nearly nine out of 10 workers are covered by 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, said in a statement. "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."