On August 27, Crystal Dynamics announced on social media that it had laid off an undisclosed number of its staff, marking the second round of layoffs that the company has suffered in 2025. However, Crystal Dynamics clarified that the ongoing development of the Tomb Raider franchise was unaffected by the news.
The layoffs came after Crystal Dynamics suffered a major setback over a month earlier. On July 2, Microsoft announced it was laying off thousands of employees across the board. The layoffs also shuttered studios like The Initiative, where a reboot of Perfect Dark was being developed for PC and Xbox consoles. Just before its acquisition by Embracer Group, Crystal Dynamics was brought in by Microsoft in 2021 to assist The Initiative with Perfect Dark's troubled development cycle. However, the company-wide layoffs by Microsoft also resulted in Perfect Dark being canceled nearly five years after its public reveal during the 2020 edition of The Game Awards.
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Crystal Dynamics Announces Another Round of Layoffs
In the aftermath of Perfect Dark's cancellation, Crystal Dynamics announced that it was letting go of some staff members as a result. Crystal Dynamics stated in a LinkedIn post that the decision to lay off some of its staff was not taken lightly, and that it was a long-term move to ensure the studio stays afloat amid the troubles that the gaming industry continues to face. As of this writing, it is not known how many employees were let go by Crystal Dynamics in this round of layoffs, and which of the studio's three locations were affected by it. Along with its headquarters in San Mateo, California, Crystal Dynamics' current roster includes employees at Crystal Southwest in Austin, Texas, and Crystal Northwest in Bellevue, Washington.
However, the August layoff was not the first one that Crystal Dynamics endured in 2025. In late March, Crystal Dynamics laid off 17 staff members. Additionally, Crystal Dynamics laid off 10 employees in 2023, bringing the total to 27 before the August layoffs took place, according to IGN. In its layoff announcement, Crystal Dynamics said, "We are committed to offering the full extent of support and resources at our disposal during this transition."
Crystal Dynamics stated that future projects in the Tomb Raider franchise were unaffected by the recent layoffs, though the company did not elaborate further about the situation. As layoffs across the gaming and tech industries continue to make headlines, it remains to be seen what the fallout will be from Crystal Dynamics' latest decision.
- Date Founded
- July 8, 1992
- Headquarters
- Redwood City, California, United States
- Parent Company
- Square Enix, Eidos Interactive, Embracer Group
- Known For
- Tomb Raider