Crystal Dynamics Announces New Round of Layoffs as Tomb Raider Development Continues

by Salal Awan

Crystal Dynamics has implemented another round of layoffs, dismissing just under 30 employees across multiple departments as part of an internal restructuring effort. The studio confirmed the decision in a public statement on LinkedIn, describing the move as necessary to support the ongoing development of its next major Tomb Raider game and to position the company for its future projects. The cuts follow a prior round of layoffs roughly two months ago, the scale of which was never publicly disclosed.

In its announcement, the company stated, “Today we’ve made the difficult but necessary decision to reorganize Crystal Dynamics’ studios and teams. As a result, we’ve parted ways with just under 30 team members across various departments and projects as we restructure the company and business for our next generation.” The message continued by offering thanks and support to those affected, adding, “We’ve made these painful choices as a way to optimize the continued development of our flagship Tomb Raider game, as well as shaping the rest of the studio to make new games for the future.”

The restructuring comes at a difficult time for the wider games industry, which has seen multiple rounds of layoffs throughout 2024 and 2025. For Crystal Dynamics, the decision shows a smart effort to concentrate resources on its biggest current production: a new mainline Tomb Raider game published by Amazon Games. The upcoming title, currently being developed using Unreal Engine 5, is expected to show a more experienced and consistent interpretation of Lara Croft. Although details are not yet confirmed, industry reports suggest the project might be a fully open-world adventure, possibly set in India.

The new Tomb Raider installment is seen internally as a key release for the studio and is scheduled for a 2026 launch across PlayStation 5, Xbox Series X and S, and PC. It represents a major change for Crystal Dynamics, which has focused on modern toolsets, high production values, and working with other studios to redefine the franchise for current-generation hardware.

Crystal Dynamics promised players that development on the next Tomb Raider remains the top focus and repeated its thanks for community support during this transition. While the studio did not explain how the restructuring affects individual projects other than its main title, it said that more updates on future work will be shared soon.

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