Crystal Dynamics announces a second round of layoffs this year

Crystal Dynamics, the studio behind the iconic Tomb Raider and Legacy of Kain franchises, has announced it has laid off a “number” of its staff.

In a statement shared on LinkedIn, the studio wrote that “today we made the very difficult decision to part ways with a number of our talented colleagues as the result of evolving business conditions. 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.”

Crystal Dynamics, since acquired by Embracer Group in August 2022, has undergone multiple downsizings. In September 2023, 10 members of staff faced redundancies due to an “internal restructuring” of the developer’s parent company. And in March 2025, the studio let go of 17 employees to “better align” the studio’s “business needs and the studio’s future success.”

Crystal Dynamics has not specified the number of people impacted by these layoffs. But former workers have posted on social media suggesting that these layoffs are a delayed reaction to the cancellation of the Perfect Dark remake, which Crystal Dynamics was working on alongside The Initiative before the latter’s shuttering in July this year.