Crystal Dynamics Faces Third Layoff of 2025, Tomb Raider Still in Development

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

This marks the studio’s third workforce reduction this year. The company explained the decision as part of a “necessary reorganisation” aimed at reshaping its future projects.

Crystal Dynamics Layoffs Continue as Tomb Raider Development Moves Forward | Image Credit: X via Gaming Amigos

The studio has been around since 1992, delivering classics like Legacy of Kain and, of course, the Tomb Raider franchise. But in recent years, things haven’t gone as smoothly. Their last major release, Marvel’s Avengers in 2020, was both a commercial and critical disappointment. And earlier this year, the highly anticipated Perfect Dark reboot for Xbox was cancelled.

According to a LinkedIn post by the company, around 30 employees have now been let go, though the specific departments weren’t disclosed. This follows two earlier layoffs: one in March that affected 17 staff members, and another in August after Perfect Dark’s cancellation.

The official statement described the move as “difficult but necessary,” thanking those who "helped shape the studio" and promising support during the transition.

About Tomb Raider, Crystal Dynamics reassured fans that development of the next entry in the series is still ongoing. The studio emphasised that these restructuring efforts are meant to “optimize the continued development of our flagship Tomb Raider game” while preparing for new projects in the future.

Sadly, layoffs have become an all-too-familiar occurrence in the gaming industry. According to Obsidian, a game layoff tracker, more than 4,400 gaming professionals lost their jobs in 2025. Recently, companies like Rockstar Games, Amazon Game Studios, Ubisoft, Avalanche Studios, Square Enix, BossFight Entertainment (Netflix), and Rovio Games have all been affected.