Crystal Dynamics Announces Another Round of Layoffs, Says Tomb Raider Projects Remain in Development
Crystal Dynamics has announced another round of layoffs, confirming that 20 employees are being let go as the studio says its current projects are entering new phases of development. In a public statement cited by GamesRadar+, the studio said the cuts affect both development staff and central operational roles, and described the move as a difficult decision that followed last year’s restructuring. Crystal Dynamics also said it remains “fully committed to the future development of our already announced Tomb Raider titles,” while stressing that its immediate priority is supporting the employees affected by the layoffs.
This latest reduction continues a difficult stretch for the studio. Based on currently reported cuts, Crystal Dynamics has gone through at least 4 layoff rounds between March 2025 and March 2026, including 17 roles eliminated in March 2025, an undisclosed number in August 2025, fewer than 30 in November 2025, and now 20 more this month. That means the studio has lost at least 67 employees over the past 12 months, and potentially more depending on the undisclosed August figure. Even without the exact August number, the pattern is clear. Crystal Dynamics has been under sustained pressure for over a year while continuing work on multiple Tomb Raider related projects.
The timing is especially notable because Crystal Dynamics now has 2 major announced Tomb Raider titles on its active slate. According to official franchise and studio pages, Tomb Raider: Legacy of Atlantis is a modern reimagining of the original 1996 Tomb Raider and is scheduled for release in 2026 on PlayStation 5, Xbox Series X|S, and Steam. Meanwhile, Tomb Raider: Catalyst is positioned as the next major mainline entry and is currently set for 2027. Crystal Dynamics’ own projects page lists both titles as current projects, reinforcing that the games remain part of the company’s live development roadmap despite the staff reductions.
That said, the studio’s reassurance will likely be met with mixed reactions from players and industry watchers. It is one thing to say that projects remain in development, and another to suggest repeated layoffs do not meaningfully affect the teams building those games. Even when a project stays on track publicly, cuts of this scale inevitably affect morale, workload distribution, and production continuity. In practical terms, fewer people often means more pressure on the remaining staff, especially at a time when teams are trying to push deeper into late stage production milestones. Crystal Dynamics may indeed remain committed to Tomb Raider, but commitment and impact are not the same thing. The projects can continue, while still being affected internally by every round of job losses. That is a reasonable inference from the scope and recurrence of these restructuring moves.
From a business standpoint, Crystal Dynamics appears to be trying to stabilize itself around its most important franchise after a turbulent period that also included the collapse of Perfect Dark. GamesRadar+ notes that the August and November 2025 restructuring came in the shadow of wider disruption tied to Microsoft’s cancellation of Perfect Dark, where Crystal Dynamics had been involved as a co development partner. Since then, Tomb Raider has become even more central to the studio’s future positioning. That makes these layoff announcements more significant, because they are happening not during a quiet period, but while Crystal Dynamics is leaning heavily on Lara Croft as the brand expected to carry the studio forward.
For fans, the biggest question now is not whether Tomb Raider is still happening, because all signs say it is. The real question is whether Crystal Dynamics can deliver both Legacy of Atlantis and Catalyst at the level players expect while absorbing repeated internal cuts over such a short time. The official message says development continues, and the public roadmap still points to a 2026 release for Legacy of Atlantis followed by Catalyst in 2027. But after a year of recurring layoffs, it is fair to say that Crystal Dynamics’ biggest challenge is no longer just building the next Tomb Raider games. It is proving that the studio can do so without the repeated disruption eventually showing on the final product.
Do you still feel confident about Crystal Dynamics’ next Tomb Raider games after these repeated layoffs, or do you think the impact will eventually show in the final releases?
