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Crystal Dynamics Hit With Fourth Round of Layoffs in 12 Months

Crystal Dynamics has confirmed another round of layoffs affecting 20 staff, marking the fourth such wave in 12 months, while insisting both Tomb Raider projects remain on track.

Eliza Crichton-Stuart

Eliza Crichton-Stuart

•

Updated Mar 19, 2026

Two Thrilling Tomb Raider Adventures ...

Crystal Dynamics has confirmed yet another round of layoffs, its fourth in just 12 months, cutting 20 staff members across development and central operations roles.

The studio posted the announcement on LinkedIn, describing it as "a difficult day" and acknowledging the weight of the decision coming so soon after last year's restructuring. "We never make these decisions lightly," Crystal Dynamics wrote, “particularly after the restructuring we underwent last year.”

Four Rounds in Twelve Months

The numbers tell a grim story. This latest cut follows previous layoff waves in March, August, and November of last year, making this the fourth time in 12 months that Crystal Dynamics has had to let people go. The affected 20 team members span both development and central operations, meaning the cuts aren't limited to any single department.

The studio's explanation points to shifting project phases as the driver. "As our current projects move into new phases of development, we continuously take a hard look at our team structures to ensure they align with our long-term studio goals," the statement read. It's the kind of language that's become painfully familiar across the industry, but that doesn't make it easier for the people walking out the door.

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Crystal Dynamics confirmed it attempted to transition affected staff into new roles wherever possible before concluding that departures were unavoidable.

Both Tomb Raider Projects Are Still Moving Forward

Here's the thing fans will want to hear: Crystal Dynamics was quick to address concerns about what this all means for Tomb Raider. The studio says it remains "fully committed" to both of its announced titles.

First up is Tomb Raider: Legacy of Atlantis, a ground-up remake of the original Tomb Raider that sends Lara Croft globe-trotting in search of the Scion of Atlantis. Then there's Tomb Raider: Catalyst, announced at The Game Awards and targeting a 2027 release on PS5, Xbox Series X/S, and Steam. That one takes Lara to Northern India, chasing a mythical cataclysm that has unleashed ancient secrets and awakened mysterious forces.

Both projects are still in active development. The studio's statement didn't suggest any delays or scope changes to either game.

What This Pattern Means for the Studio

Four rounds of layoffs inside a single year is a significant toll on any studio's culture and capacity. What makes this stretch particularly notable for Crystal Dynamics is that it's happening while the team is simultaneously developing two major Tomb Raider titles, one a full remake and one a brand-new entry built for current-gen hardware.

The studio acknowledged in its statement that many people would be concerned, and that concern is understandable. Losing 20 more colleagues on top of the cuts that came before raises real questions about the team's bandwidth, even if the official line is that everything is on track.

For fans keeping a close eye on both games, the developers have shared key details about Catalyst's design philosophy, including the fact that it's built so new players can jump in without any prior Tomb Raider knowledge required. That's a meaningful signal about the direction of the franchise, regardless of what's happening behind the scenes. Make sure to check out more:

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Eliza Crichton-Stuart author avatar

Eliza Crichton-Stuart

Head of Operations

Announcements, Reports

updated

March 19th 2026

posted

March 19th 2026

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