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Crystal Dynamics, the studio behind the acclaimed Tomb Raider franchise, has announced a significant reduction in its workforce, referring to the layoffs as a necessary step for the organization’s ongoing success. A total of 17 employees will be affected by this decision, which the studio insists will not impact its ongoing projects, including the next installment of Tomb Raider and the Perfect Dark reboot for Xbox.
Crystal Dynamics Confirms Job Cuts
In an official statement, Crystal Dynamics expressed regret over the layoffs, stating, “This morning, Crystal Dynamics made the difficult decision to reduce our workforce by 17 talented team members. We did not make this decision lightly. Ultimately, this step was necessary to better align our current business needs and the studio’s future success. It is not a reflection of the dedication or ability of those affected.”
The studio has committed to assisting impacted employees through transition packages and job placement services, reaffirming its dedication to delivering high-quality gaming experiences. “Crystal Dynamics remains committed to pushing the boundaries of making great games. This change does not alter our current project plans,” the statement read.
The job cuts at Crystal Dynamics occur against a backdrop of broader workforce reductions across the gaming industry, with many companies continuing to downsize in 2025. Notably, Warner Bros. has announced the closure of three studios alongside the cancellation of a major AAA title. Other companies, including NetEase, Striking Distance Studios, Crytek, and BioWare, have also faced layoffs this year.
Despite these challenges, Crystal Dynamics has been making strides on its next Tomb Raider project, which will be published by Amazon Games. The studio had previously been viewed as “fairly sheltered” from the financial struggles that have affected its parent company, Embracer Group, according to Amazon Games vice president Christoph Hartmann. Embracer acquired Crystal Dynamics from Square Enix in 2022; however, it later experienced financial difficulties following a failed $2 billion investment deal with Saudi Arabia’s Savvy Games Group. This led to a steep decline in share prices, mass layoffs, and the closure of several studios, as well as the cancellation of numerous projects.
While Embracer sold off some assets like Gearbox to Take-Two and divested Saber Interactive, it retained Crystal Dynamics and the rights to the Tomb Raider franchise. Currently, details about the upcoming Tomb Raider game remain limited, but it has been confirmed that it will be a single-player, narrative-driven adventure continuing the journey of its iconic protagonist, Lara Croft.
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