Crystal Dynamics hit by second wave of layoffs

After a first round of layoffs earlier this year, the Tomb Raider studio has now confirmed yet another wave of job cuts.
Text: Marcus Persson
Published 2025-08-27

It's been a rough couple of years for the gaming industry, and unfortunately, the situation doesn't seem to be improving anytime soon. This time, Crystal Dynamics is once again in the firing line, as the studio—already hit by previous layoffs—faces a second wave of job cuts.

The news was announced today on LinkedIn, where the company explained the move as a result of "evolving business conditions."

"This decision was not made lightly. It was necessary, however, to ensure the long-term health of our studio and core creative priorities in a continually shifting market."

The exact number of employees affected remains unclear, but the studio currently has just over 200 staff spread across three offices. This also marks the second time in a short span that Embracer has gone back on its promise to shield Crystal Dynamics from layoffs.

The already shaky outlook for Tomb Raider is now even more uncertain, despite the company's insistence that the project is unaffected. Reports from insiders have long suggested otherwise, raising the question of just how much longer Lara Croft can endure, and how deep the crisis behind the scenes truly runs.

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