“This decision was not made lightly” — Tomb Raider dev Crystal Dynamics hit by “necessary” layoffs for second time this year, and I’m sick of writing this headline

worldwide, there’s a wave of job cuts affecting game developers and publishers, and now, Crystal Dynamics – renowned for their work on the iconic Tomb Raider action-adventure series – has become part of this trend.

On LinkedIn, during the afternoon of Wednesday, the developer shared some news, stating that certain skilled team members had been released from the company as a result of changing market circumstances.

Today, we announced that we must let go of several skilled team members due to changes in our business environment. This wasn’t an easy choice to make. However, it was essential to maintain the longevity of our studio and focus on our fundamental creative goals in a rapidly changing industry.

Crystal Dynamics has pledged to offer support to those employees impacted by the recent layoffs, although they have yet to disclose details about the kind of assistance or financial compensation that will be provided.

For all who have been affected, we acknowledge and appreciate your dedication, skill, and enthusiasm. Rest assured, we are prepared to provide all necessary assistance and resources as you navigate through this change.

https://www.linkedin.com/watch?v=feed/update/urn:li:share:7366524685213184000

At the end of their announcement, the studio expressed gratitude towards their dedicated teams, collaborative partners, and enthusiastic players. They further clarified that the Tomb Raider series remains unaffected by any recent cost-saving measures.

To our dedicated teams, players, and partners, we express our gratitude for your ongoing commitment as we collaborate to create a forward-thinking, eco-friendly, and robust future. Rest assured, the future of Tomb Raider remains undeterred by this announcement.

As a analysing entity, I must admit that the current situation with Crystal Dynamics is somewhat ambiguous. The exact number of employees impacted by the recent layoffs remains unspecified, and it’s also uncertain which particular divisions within the studio have been hit harder than others, if any at all.

This year, the developer has experienced its second round of layoffs, with 17 employees let go in late March as well. As now, they justified these dismissals as “essential,” stating that it was necessary to “adjust our existing business requirements to the studio’s long-term prosperity.

It’s worth noting that Crystal Dynamics is part of Embracer Group, a substantial Swedish video game conglomerate with a reputation for significant job cuts and studio shutdowns across its portfolio.

A significant portion of the company’s hardships over the past few years can be traced back to the failure of a crucial $2 billion agreement in 2022, an event which the company heavily relied upon. The subsequent fallout saw a decline of approximately 40% in the stock prices.

The programmer is at present engaged in developing a yet-unnamed Tomb Raider title, published by Amazon Games. Previously, they were collaborating with Xbox studio The Initiative on the revival of Perfect Dark; however, this partnership concluded when Microsoft closed down The Initiative and their Perfect Dark project in July.

When will the bleeding stop?

The latest rounds of job cuts at Crystal Dynamics are just another example of the widespread layoffs that have hit the video game industry over the past few years, impacting approximately 40,000 developers in total.

These departures from companies like Microsoft and Xbox, Virtuos Games (Metal Gear Solid Delta), Supermassive Games (Little Nightmares), Bungie (Destiny 2), and NetEase Games (Marvel Rivals) have significantly impacted the industry, resulting in job losses for numerous dedicated developers.

The job losses can primarily be linked back to excessive investment in the gaming sector during the pandemic, as the initial boom in interest subsided when stay-at-home orders ended and everyday life resumed its usual course. Furthermore, external factors such as global economic changes and escalating expenses associated with game development have contributed to these layoffs.

While there’s optimism about a swift recovery ahead, it’s continually disheartening to face yet another wave of job cuts, and repetitively having to pen such grim headlines. For the sake of the talented individuals who bring our cherished games to life, I can only fervently wish for the industry to stabilize as soon as possible.

Our hearts are with every developer impacted by recent layoffs, along with all those at Windows Central who share this sentiment.

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2025-08-28 01:39