Crystal Dynamics, the long-running developer behind the Tomb Raider series, has once again reduced its workforce — this time letting go of 20 employees across development and central operations roles. The studio confirmed the cuts in a LinkedIn post on March 19, calling it “a difficult day” while maintaining that its upcoming projects remain unaffected. This marks the fourth time in just 12 months that the Embracer Group-owned studio has trimmed its headcount, raising fresh concerns about the health of one of gaming’s most storied developers.
The pattern of cuts stretches back to March 2025, when 17 staffers were laid off. That was followed by an unspecified number of departures in August — reportedly tied to the cancellation of Xbox’s Perfect Dark, which Crystal Dynamics had been co-developing — and then close to 30 more cuts in November. At the time of its acquisition by Embracer in 2022, the studio employed 273 people across offices in Austin, Bellevue, and San Mateo. After four rounds of layoffs and additional job losses in 2023, the current size of the team remains unclear.
In its statement, Crystal Dynamics attributed the latest restructuring to its projects entering “new phases of development,” saying it continuously evaluates team structures to align with long-term goals. The studio acknowledged that it tries to move employees into new positions wherever possible but conceded that “these departures are necessary.” Affected workers will receive severance packages and job placement support, and the company encouraged anyone with openings to get in touch, according to IGN.
Despite the ongoing turbulence, Crystal Dynamics was emphatic that its two announced Tomb Raider titles are still moving forward. Tomb Raider: Legacy of Atlantis, a remake of the original 1996 classic, is expected to launch later this year on PlayStation 5, Xbox Series X/S, and PC. The all-new Tomb Raider: Catalyst, which will transport Lara Croft to Northern India in the wake of a mythical cataclysm, is slated for a 2027 release. Both games will feature actress Alix Wilton Regan as the new voice of Lara, as reported by Eurogamer.
Both titles are being published by Amazon Games, which has itself navigated a rough stretch that includes project cancellations and its own workforce reductions. Meanwhile, a live-action Tomb Raider television series starring Sophie Turner is currently filming in Surrey, England under the Prime Video banner. The franchise is clearly being positioned as a major multimedia property, even as the studio at its center continues to shrink.
The repeated layoffs at Crystal Dynamics reflect a broader and troubling trend across the games industry, where studios large and small have shed thousands of jobs over the past two years. For the developers affected, the reassurances about Tomb Raider’s future offer little comfort. As GameSpot noted, Crystal Dynamics’ ownership under Embracer — a conglomerate that has itself undergone dramatic restructuring — adds another layer of uncertainty to the studio’s outlook, no matter how committed it claims to be.