King signs Swedish collective agreement, averts Stockholm and Malmo strike
Summary
King signed a collective bargaining agreement with Unionen and Engineers of Sweden on September 24, 2026, hours before a 5am strike.
The deal ends 16 months of negotiations that began in May 2025 and hit an impasse September 15.
It covers roughly 100 unionized staff among King's approximately 550 employees in Sweden.
The contract guarantees advance notice before reorganizations and greater employee influence over work conditions.
"This is an important step for King, the gaming industry and for the Swedish model."
01
King signed at the eleventh hour to cancel the walkout
Unionen and Engineers of Sweden issued a strike notice on September 15, 2026.
King signed hours before the 5am September 25 walkout at Stockholm and Malmo.
The agreement grants the right to organize and requires information "in good time" before reorganizations.
Engineers of Sweden calls the contract a baseline standard that applies to all employees.
Only union members receive negotiation support under the deal.
02
Advance-notice clause formalizes rights King resisted through 2025 cuts
Nine in ten Swedish employees already work under a collective agreement, per Frankelius.
King held out unusually long for a studio of its size.
The company cut roughly 200 jobs in mid-2025, including 75 Barcelona roles, 12% of that office.
Further cuts hit Stockholm, London, Berlin and remote positions.
Sources reported King's narrative and UX writing teams were replaced by AI tools they helped build.
King refuted the AI-replacement claim in March.
"This shows the power that comes from employees joining forces in their dedication for change and improvement."
03
Microsoft restructuring makes the clause its first union test
The agreement takes effect April 1, 2027, leaving a six-month implementation window.
King and Mojang now report directly to Xbox boss Asha Sharma.
King escaped the September 2026 cuts that eliminated 268 first-party jobs.
Matt Booty confirmed the division is three-quarters through the July 2026 restructuring.
What this means
For Publishers & Developers: Studios of King's size in Sweden now face a signed precedent for advance-notice obligations.
For Investors & VC: The April 2027 effective date sets when Microsoft must consult unionized King staff on further cuts.
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