Crystal Dynamics Faces Further Layoffs Amidst Tomb Raider Development

Crystal Dynamics, the studio behind the Tomb Raider franchise, is undergoing another round of layoffs, impacting 20 staff members. This marks the fourth round of staff reductions in just over a year for the studio, as it navigates development challenges with both the Tomb Raider series and the Perfect Dark project.

Recent Layoffs and Studio Restructuring

Announced on March 18, 2026, the latest cuts affect both development personnel and central operations roles . The studio stated the decision was made to align team structures with long-term goals, though acknowledged the difficulty of the situation. Prior layoffs occurred in November 2025 (30 staff), August 2025 (unspecified number), and March 2025 (17 staff) .

Ongoing Projects and Challenges

Despite the layoffs, Crystal Dynamics maintains its commitment to the development of announced Tomb Raider titles, including the Tomb Raider remake (Legacy of Atlantis) and a new entry in the series (Catalyst) . Tomb Raider: Legacy of Atlantis, a remake of the original 1996 game built in Unreal Engine 5, is slated for release later in 2026. Tomb Raider: Catalyst, aiming for a more open-world experience, is planned for release beyond 2027 .

The studio’s challenges extend beyond Tomb Raider. Crystal Dynamics was also co-developing Perfect Dark with The Initiative, but Microsoft cancelled the project in 2025 . The planned Amazon Tomb Raider TV series remains in development limbo, with production stalled for over three years despite significant investment and multiple attempts at scripting .

Parent Company Issues

These layoffs occur against a backdrop of restructuring within parent company Embracer Group, which initiated cuts in 2023 affecting marketing and IT personnel .