Crystal Dynamics is going through a difficult time. The company that was a top-tier media presence when it took part in the future of Tomb Raider, especially with the reboot, has now moved to a much more secondary role. Following the cancellation of Perfect Dark, on which it worked side by side with The Initiative, the company went through a series of controversial layoffs in 2025, and this week it repeats the bad news: the Californian company has announced a new round of staff cuts.

Yesterday, March 18, the company confirmed the dismissal of 20 employees from both development staff and operational roles. As mentioned, this decision adds to a worrying chain of cuts: 30 layoffs in November, more in August without a concrete figure, and 17 more in March of last year. In total, the studio has accumulated four rounds of layoffs in barely a year, reflecting the difficult internal situation and constant adjustments to its structure.

Crystal Dynamics Is Looking for More Stable and Smaller Teams

According to Crystal Dynamics itself, these changes respond to the need to adapt teams to the different development phases of its projects. The company assures that it has tried to relocate affected workers wherever possible, though it acknowledges it has reached a point where these departures are inevitable to maintain its long-term objectives.

The studio’s difficult situation is also shaped by external factors. Its parent company, Embracer Group, has been the protagonist of multiple controversial decisions in recent years, while Microsoft‘s cancellation of Perfect Dark was another blow, as the team was collaborating on its development alongside The Initiative. Added to this is the precedent of Marvel’s Avengers, a project that failed to meet expectations as a live service game.

Despite everything, the studio insists that its priority remains the future of the saga. Tomb Raider: Legacy of Atlantis, being developed alongside Flying Wild Hog, is planned for release later this year with an Unreal Engine 5 overhaul, while Tomb Raider: Catalyst continues in development with its sights set beyond 2027. Both titles will be published by Amazon Games rather than Embracer Group, which has established itself as the entity with ultimate responsibility for the Lara Croft franchise.

Source: 3djuegos