King, the developer behind Candy Crush, has signed a collective bargaining agreement (CBA) covering its Swedish employees, averting a planned strike. The Microsoft-owned company finalized the deal with Unionen and Engineers of Sweden on Thursday, just one day before workers were scheduled to walk out and two days after the latest Xbox layoffs. The agreement takes effect on April 1, 2027.

Talks began in May 2025, sparked by the sudden removal of a private doctor benefit in 2024, which led employees to form a union club. A strike notice was issued on September 15, followed by mediation. Before this week's agreement, King had resisted a CBA, arguing its existing benefits were superior and that restructuring could harm workers—a stance similar to that of Apple, Amazon, and Activision Blizzard.

The unions say the deal gives King employees more influence over working conditions and advance notice of changes, including reorganizations. While it won't prevent layoffs, it provides formal influence and aligns King with Swedish norms, where nearly 90% of employees have basic job security through CBAs. "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.