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2h ago

Crystal Dynamics Cuts Staff, Says Next Tomb Raider Is Unaffected

The Embracer-owned studio cited “evolving business conditions” for the layoffs.

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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.

Overview

  • Crystal Dynamics did not disclose how many employees were let go or which teams were affected.
  • The studio said it will offer support and resources to workers impacted by the decision.
  • Social posts from people who say they were laid off suggest cuts concentrated on the Perfect Dark collaboration after Microsoft canceled that project in July, a detail not confirmed by the company.
  • This is the latest in a series of reductions since Embracer acquired the studio in 2022, following 17 layoffs in March 2025 and about 10 in 2023.
  • The upcoming Tomb Raider is still in development on Unreal Engine 5 with Amazon Games set to publish.