Image via Crytek
Crytek is laying off 15 percent of its workforce and pausing production on Crysis 4.
The company broke the news on X and explained the layoffs will impact its development and shared services teams.
The German studio currently has around 400 employees, meaning around 60 people could lose their jobs.
Crytek claimed the layoffs are a result of the "complex, unfavorable market dynamics that have hit our industry these past several years."
"This has not been an easy decision to make, as we deeply appreciate the hard work of our talented teams," reads the statement. "After putting the development of the next Crysis game on hold in Q3 2024, we have been trying to shift developers over to Hunt: Showdown 1896.
Crytek's bet on Hunt: Showdown 1896
"While Hunt: Showdown 1896 is still growing, Crytek cannot continue as before and remain financially sustainable. Even after ongoing efforts to reduce costs and cut operating expenses, we have determined that layoffs are inevitable to move forward."
Crytek will offer severance packages and career assistance services to those impacted.
The company insisted it will be able to become sustainable by prioritizing Hunt: Showdown 1896.
"We have a very strong gaming service and remain fully committed to to its operation," continues the statement. "We will continue to expand and evolve Hunt: Showdown 1896 with great content and drive our strategy for our engine CryEngine."
