Crystal Dynamics Announces Layoffs, Tomb Raider Development Unaffected

Tomb Raider 4 (Credit: Crystal Dynamics)

Crystal Dynamics — the studio behind the last six main Tomb Raider games — has confirmed another round of layoffs, announced Wednesday via LinkedIn.

The cuts, which the company says come from “evolving business conditions,” were described as a tough but necessary step to protect the studio’s "long‑term health" and "core creative priorities" in a continually shifting market.

The team thanked departing staff for their contributions and promised support during the transition, while assuring fans that the next Tomb Raider is still on track.

First revealed in December 2022 with Amazon publishing, the game has only shown classic‑outfit concept art so far — no gameplay or release date — but Amazon told in an Interview last year that development remains steady despite Embracer Group’s corporate turbulence.

It’s not the first downsizing: 17 roles were cut in March 2025 and 10 in September 2023. Much of the restructuring appears tied to the cancellation of Microsoft’s Perfect Dark reboot earlier this year, which Crystal was co‑developing with The Initiative before both that project and The Initiative itself were shut down this year.

Crystal Dynamics, acquired by Embracer in 2022, with around 273 employees at the time, still operates offices in Austin, Bellevue, and San Mateo, but the current headcount is unclear after multiple layoffs.

The studio developed the last six main Tomb Raider titles – Legend, Anniversary, Underworld, the 2013 reboot, Rise, and Shadow – and also worked on Marvel’s Avengers.