More Job Cuts at Crystal Dynamics Amid Ongoing Challenges
Crystal Dynamics experiences another wave of layoffs as the company grapples with industry challenges, although the development of its popular Tomb Raider franchise remains stable.
On August 27, Crystal Dynamics announced through social media the implementation of another round of layoffs within its workforce, representing the organization’s second such action in 2025. The studio clarified that the continuing development of the Tomb Raider franchise would not be impacted by these staffing changes.
The layoffs occurred after a significant setback experienced by Crystal Dynamics when Microsoft announced extensive layoffs across multiple departments on July 2. As a result, several studios were affected, including The Initiative, known for rebooting Perfect Dark for PC and Xbox. The acquisition of Crystal Dynamics by Embracer Group followed Microsoft’s decision in 2021 to bolster The Initiative amidst challenges faced in development. Nonetheless, the recent layoffs at Microsoft effectively led to the cancellation of Perfect Dark, nearly five years after its initial public unveiling at the Game Awards 2020.
Crystal Dynamics Faces New Challenges
Following the cancellation of Perfect Dark, Crystal Dynamics disclosed plans to release several staff members as a part of restructuring efforts. In a LinkedIn announcement, the studio emphasized that these layoffs were a difficult but necessary step to ensure long-term stability amidst the persistent challenges in the gaming industry. At this time, it remains unclear how many employees were laid off or which of their studio locations—including their headquarters in San Mateo, California; Crystal Southwest in Austin, Texas; and Crystal Northwest in Bellevue, Washington—were impacted.
The August layoffs were not the first occurrence this year. In March, the company had previously laid off 17 employees, along with an additional 10 hires let go in 2023, resulting in a total of 27 staff reductions leading to the recent announcement. Crystal Dynamics asserted, “We are committed to providing every possible support and resource during this transition.” Despite these layoffs, the company has assured that its upcoming Tomb Raider projects remain unaffected, although specific details were not provided concerning future developments.
