Tomb Raider Developer Crystal Dynamics Announces Job Cuts

Crystal Dynamics, the studio behind the iconic Tomb Raider series, has laid off 17 employees. The company called it a “difficult decision” but said it was necessary to align with its business goals and future plans.

While it didn’t specify which teams were impacted, the studio made it clear that the layoffs weren’t about performance. To help those affected, the company is offering severance packages and job placement support.

Despite the layoffs, Crystal Dynamics assured fans that its “current projects are still on track.” The studio is busy working on the next Tomb Raider game, which is being developed in partnership with Amazon Games. Back in 2022, Amazon promised its full support to make this the “biggest, most expansive” Tomb Raider game yet. The game is being built with Unreal Engine 5, so players can expect impressive visuals, tricky puzzles, and action-packed gameplay.

Perfect Dark is another game Crystal Dynamics is helping develop. Originally led by Microsoft’s The Initiative, Crystal Dynamics joined the project in 2021 to assist with development. However, reports from last year suggested the game was already facing issues, with production delays slowing things down. It’s unclear if these recent layoffs will cause further setbacks.

Founded in 1992, Crystal Dynamics has played a major role in the gaming industry, creating beloved franchises like Tomb Raider, Gex, and Legacy of Kain: Soul Reaver. After being acquired by Square Enix in 2009, the studio launched a critically acclaimed Tomb Raider reboot trilogy, starting with Tomb Raider (2013), followed by Rise of the Tomb Raider (2015) and Shadow of the Tomb Raider (2018). However, it faced setbacks with the live-service game Marvel’s Avengers, which cost over $100 million and was ultimately delisted from digital stores in 2023. This failure contributed to Square Enix selling the studio to Embracer Group.

Embracer Group has also hit some choppy waters lately. After a period of aggressive expansion—acquiring studios like Crystal Dynamics, Gearbox, and Saber Interactive, along with numerous IPs during the pandemic boom—the company was hit with significant financial difficulties. At one point, its debt exceeded $2 billion, prompting a major restructuring. As a result, Embracer has laid off over 900 employees, shut down studios like Volition (Saints Row), and canceled multiple projects. Even high-profile asset sales, such as Gearbox to Take-Two for $460 million in 2024, haven’t fully stabilized the company.

The gaming industry as a whole has been struggling with financial pressures, with studio closures and layoffs becoming increasingly common. Recently, major companies like NetEase, Microsoft, Rocksteady, and WB Games have also gone through rounds of layoffs. According to GDC reports, 1 in 10 game developers lost their jobs in 2024, while a layoffs tracker estimated that 16,000 industry professionals were affected that year.