Crystal Dynamics Hit With More Layoffs

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On August 27th, I learned through social media that my beloved game developer, Crystal Dynamics, had to let go of some team members, making it their second round of layoffs in the year 2025. Yet, amidst this news, Crystal Dynamics ensured us that the ongoing journey of the Tomb Raider franchise remains unchanged and continues to thrive.

Following a significant setback approximately a month prior, Crystal Dynamics faced mass job cuts. On July 2, Microsoft made the announcement that they would be letting go of thousands of employees across all departments. This included the closure of studios such as The Initiative, where a remake of Perfect Dark was underway for both PC and Xbox consoles. Prior to its acquisition by Embracer Group in 2021, Crystal Dynamics had been enlisted by Microsoft to aid The Initiative in smoothing out the development process of Perfect Dark. Unfortunately, the widespread layoffs by Microsoft led to the cancellation of Perfect Dark, which had initially been unveiled to the public during the 2020 edition of The Game Awards, some four and a half years prior.

Crystal Dynamics Announces Another Round of Layoffs

Following the cancellation of Perfect Dark, Crystal Dynamics made the difficult choice to reduce its workforce. In a post on LinkedIn, they explained that this tough decision was necessary for the long-term survival of their studio, as the gaming industry faces ongoing challenges. However, at this time, it is unknown exactly how many employees were affected by these layoffs or which of Crystal Dynamics’ three locations (San Mateo, California, Crystal Southwest in Austin, Texas, and Crystal Northwest in Bellevue, Washington) were impacted.

It’s important to note that Crystal Dynamics had experienced layoffs prior to August 2025. Back in March 2025, they let go of 17 employees. Earlier in 2023, another round of layoffs affected 10 staff members. These events brought the total number of employees let go by Crystal Dynamics to 27 before the August layoffs occurred. According to IGN, Crystal Dynamics expressed their dedication to providing all necessary help and resources during this transition period in their announcement about the layoffs.

Crystal Dynamics affirmed that upcoming Tomb Raider series projects would not be impacted by recent job cuts. However, they did not provide additional details regarding the situation. With layoffs persisting in the gaming and tech sectors, it is yet unclear what consequences will arise from Crystal Dynamics’ recent move.

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2025-08-27 23:33