Embracer studio Crystal Dynamics has laid off 17 workers

March 28, 2025
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Crystal Dynamics signage inside a company office
Image via Crystal Dynamics / Embracer Group

Tomb Raider developer Crystal Dynamics has laid off 17 employees.

The Embracer-owned studio said the layoffs are "not a reflection of the dedication or ability of those affected" but will help the company realign to meet its "current business needs."

"We recognize how painful this outcome is for those impacted and we are supporting them with transition packages and opportunity outreach," reads a brief statement shared on Linkedin.

"Crystal Dynamics remains committed to pushing the boundaries of making great games. This change does not alter our current project plans."

It's unclear whether any specific projects or departments have been impacted by the cuts.

Crystal Dynamics' current projects

Crystal Dynamics is currently working on the next entry in the Tomb Raider franchise, which is being built in Unreal Engine 5 and will be published by Amazon Games.

It would represent the first major release for the studio since it was acquired by Swedish conglomerate and layoff merchant Embracer Group in 2022.

The studio is also co-developing the upcoming Perfect Dark reboot alongside The Initiative.

Embracer purchased Crystal Dynamics from Square Enix alongside other studios including Eidos-Montreal, Square Enix Montreal in a deal worth $300 million. It also bought the rights to key franchises like Deus Ex, Thief, and Tomb Raider.

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After completing that deal, Embracer embarked upon a widespread restructuring program that resulted in mass layoffs, studio closures, notable divestments, and project cancellations.

That seemingly included a round of job cuts at Crystal Dynamics in 2023.

Game Developer has reached out to Embracer for more information about the latest redundancies.

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