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5h ago

Crystal Dynamics Announces New Layoffs, Says Tomb Raider Development Unaffected

The Embracer-owned studio attributed the cuts to evolving business conditions in a turbulent year for game makers.

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A scene from Shadow of the Tomb Raider showing Laura hunting through a forest with her bow while a leopard prowls a branch above her.
After years of development, Microsoft ultimately cancelled the Perfect Dark reboot in July, also closing its studio The Initiative as part of a larger, devastating round of layoffs around the company.
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Overview

  • The studio disclosed the reductions in a LinkedIn post without specifying how many employees were affected.
  • Leadership said the decision was necessary to protect the long-term health of the studio and its core creative priorities.
  • Crystal Dynamics said work on the next Tomb Raider continues unaffected, with the game in Unreal Engine 5 and set to be published by Amazon Games.
  • The company previously cut 17 roles in March 2025 and 10 in 2023, marking its third round of layoffs since 2022.
  • Crystal Dynamics, acquired by Embracer in 2022, had assisted on Perfect Dark before that project was canceled and The Initiative was closed, with no confirmed link to today’s cuts.