On August 27, 2025, Crystal Dynamics announced via social media that it had laid off an undisclosed number of staff, marking the second round of layoffs the company has suffered this year. Despite the news, the studio clarified that development of the Tomb Raider franchise remains unaffected.
Tied to Perfect Dark’s Cancellation
The announcement follows a major setback earlier in the summer. On July 2, Microsoft confirmed a massive company-wide layoff, which not only impacted thousands of employees but also shuttered multiple studios, including The Initiative. The Initiative had been working on a reboot of Perfect Dark for PC and Xbox consoles, with Crystal Dynamics brought in as a support studio in 2021 to help stabilize the troubled project.
However, Microsoft’s layoffs led to Perfect Dark’s cancellation nearly five years after its reveal at The Game Awards 2020. Crystal Dynamics has since confirmed that some of its own layoffs were a direct result of the project’s termination.
Details on the Layoffs
In a LinkedIn post, Crystal Dynamics stated:
“Today we made the very difficult decision to part ways with some of our colleagues. This was not taken lightly and is part of a long-term move to ensure the studio stays afloat amid the current challenges facing the industry.”
At this time, it is unknown how many employees were affected or which of Crystal Dynamics’ three locations — its San Mateo headquarters, Crystal Southwest in Austin, or Crystal Northwest in Bellevue — bore the brunt of the layoffs.
Previous Rounds of Layoffs
This marks the second time Crystal Dynamics has downsized in 2025. In late March, the studio cut 17 staff members, while in 2023, an additional 10 employees were laid off. With the most recent cuts, the total number of affected workers before August’s layoffs stood at 27, according to IGN.
Future of Tomb Raider Remains Secure
Despite the difficult news, Crystal Dynamics reassured fans that its upcoming Tomb Raider projects remain unaffected by the layoffs. However, no additional details were shared about the status or timeline of the series’ next installment.
As layoffs across the gaming and tech industries continue to dominate headlines in 2025, it remains to be seen what long-term impact these decisions will have on both The Company and the broader landscape of video game development.