Tomb Raider Studio Crystal Dynamics Faces Second Round Of Layoffs In 2025: Will It Affect Game Release?

Tomb Raider developer Crystal Dynamics has announced another round of layoffs, its second this year, citing “evolving business conditions.” The company, a subsidiary of Embracer Group, did not reveal the number of employees impacted but stressed that the decision was necessary to secure the studio’s long-term health. Importantly, the developer reassured fans that the upcoming Tomb Raider game remains unaffected despite the job cuts. Also Read: Cyberpunk 2 Enters Pre-Production: CD Projekt RED’s Project Orion Is Officially Underway

Layoffs Linked to Industry Shifts

The latest announcement was made through a LinkedIn post, where Crystal Dynamics confirmed parting ways with several staff members. The move follows the cancellation of Microsoft’s Perfect Dark reboot, which the studio had been co-developing with The Initiative. Microsoft scrapped the project in July while also shutting down The Initiative amid widespread layoffs at Xbox.

Crystal Dynamics described the step as “very difficult” but emphasized it was required to stay aligned with its creative priorities in a volatile gaming market. The studio had previously let go of 17 employees in March 2025, also calling those cuts “necessary” for its future success.

Next Tomb Raider Game Unaffected

Despite the turbulence, Crystal Dynamics confirmed that development on the next Tomb Raider title is progressing smoothly. The game, published by Amazon Games, is being built on Unreal Engine 5 and is expected to be the biggest and most expansive entry in the franchise. While details remain under wraps, the studio has promised a single-player, narrative-driven adventure that will continue Lara Croft’s story.

Amazon Games’ vice president Christoph Hartmann had previously assured fans that progress on the project was going well, even amid the Embracer Group’s broader layoffs last year.

For now, Crystal Dynamics says its focus remains on building a “creative, sustainable, and resilient tomorrow.” While the layoffs reflect ongoing industry challenges, Tomb Raider fans can take comfort in knowing that Lara Croft’s next adventure is still on the horizon.