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Crystal Dynamics Announces Second Round of Layoffs This Year, Says Next Tomb Raider Game Is Unaffected

Crystal Dynamics Announces Second Round of Layoffs This Year, Says Next Tomb Raider Game Is Unaffected

Crystal Dynamics had laid off 17 employees in March, as well.

Written by Manas Mitul | Updated: 28 August 2025 20:04 IST

Crystal Dynamics Announces Second Round of Layoffs This Year, Says Next Tomb Raider Game Is Unaffected

Photo Credit: Crystal Dynamics

Crystal Dynamics is currently making the next Tomb Raider game

Highlights

Crystal Dynamics was co-developing the cancelled Perfect Dark reboot
The studio has not shared details on the next Tomb Raider game
Crystal Dynamics is a subsidiary of Embracer Group

Tomb Raider developer Crystal Dynamics has announced a new round of layoffs, its second this year, citing “evolving business conditions”. The game maker, which had been working on Microsoft's cancelled Perfect Dark reboot, is cutting an unspecified number of jobs to ensure its “long-term health”. The studio confirmed that the latest round of layoffs did not affect the future of the next Tomb Raider game. Crystal Dynamics had laid off 17 employees in March, calling the cuts necessary for its future success.

Crystal Dynamics Announces Layoffs

The developer announced the latest round of layoffs in a post on LinkedIn, but did not confirm the number of staff members impacted by the move. The cuts follow the cancellation of the Perfect Dark reboot in development at The Initiative and Crystal Dynamics. Microsoft cancelled the game and shuttered The Initiative in July as part of widespread cuts at Xbox.

“Today we made the very difficult decision to part ways with a number of our talented colleagues as the result of evolving business conditions,” Crystal Dynamics said.

Amazon Games Chief Says Development on Next Tomb Raider Game 'Going Well'

“This decision was not made lightly. It was necessary, however, to ensure the long-term health of our studio and core creative priorities in a continually shifting market.

“To those impacted - we recognize and thank you for your hard work, talent, and passion. We are committed to offering the full extent of support and resources at our disposal during this transition.

“To our teams, players, and partners, thank you for your continued support as we build a creative, sustainable, and resilient tomorrow together. This includes the future of Tomb Raider, which remains unaffected by this decision.”

Tomb Raider Developer Crystal Dynamics Announces Layoffs

In March, the studio laid off 17 staff members, but said its plans for projects in development would not be affected. The studio had called the cuts “necessary” for its future success at the time.

Crystal Dynamics, a subsidiary of Embracer Group, is also developing the next Tomb Raider game, set to be published by Amazon Games. The studio has not shared details about the game, but it is confirmed to be a single-player, narrative-driven adventure that continues Lara Croft's story in the series.

Last year, amid layoffs at Embracer, Amazon Games vice president Christoph Hartmann had said that work on the next Tomb Raider title was progressing well. The game is being developed in Unreal Engine 5 and is claimed to be the “biggest, most expansive Tomb Raider game to date.”

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Further reading: Crystal Dynamics, Tomb Raider, Perfect Dark, Embracer Group

Manas Mitul

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In his time as a journalist, Manas Mitul has written on a wide spectrum of beats including politics, culture and sports. He enjoys reading, walking around in museums and rewatching films. Talk to Manas about football and tennis, but maybe don’t bring up his video game backlog. More