**Crystal Dynamics Faces Workforce Cuts Amid Ongoing Projects**
Crystal Dynamics, the studio recognized for the legendary video game figure Lara Croft, has announced another round of layoffs as part of its fourth restructuring in a year. This latest action, revealed on March 18, will result in 20 employees being let go from development and operational positions. These reductions complement earlier layoffs, which included 30 people in November, an unspecified amount in August, and 17 in March.
The layoffs occur during a challenging period for the gaming sector, marked by difficulties within the AAA segment. Nevertheless, Crystal Dynamics unveiled new titles, *Tomb Raider: Legacy of Atlantis* and *Tomb Raider: Catalyst*, at The Game Awards 2025, asserting that these upcoming games will remain unaffected by the workforce cuts.
In a statement shared on LinkedIn, the company remarked, “As our ongoing projects transition into new development phases, we consistently evaluate our team structures to ensure they align with our long-term studio objectives.” The studio conveyed sorrow but underscored the importance of these departures for future coherence.
Crystal Dynamics had previously reported a workforce of 273 in 2022. Since then, it has experienced significant downsizing in light of challenges from parent company Embracer and notable project cancellations, including Microsoft’s suspension of *Perfect Dark*, which was being co-developed with The Initiative.
Currently, Crystal Dynamics is concentrating on the delivery of *Tomb Raider: Legacy of Atlantis*, a remake using Unreal Engine 5 of the original 1996 game, and *Tomb Raider: Catalyst*, which aims to broaden the franchise into an open-world format. While the remake is anticipated to launch later this year, *Catalyst* has encountered an extended development period with no confirmed release date beyond 2027.
In recognizing community concerns about the layoffs, Crystal Dynamics assured fans of its dedication to its announced *Tomb Raider* projects, stating, “Today, however, our priority is supporting our colleagues who are moving on.”
Both forthcoming titles are scheduled to be published by Amazon Game Studios, which is shifting away from its former goals in AAA gaming to concentrate on lower-cost party games. However, Amazon has reaffirmed its commitment to publishing the *Tomb Raider* titles, despite uncertainties about their integration within the broader scope of its gaming initiatives. Additionally, the tech giant is also developing a *Tomb Raider* television series for Amazon Prime.
