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Crystal Dynamics Cuts 20 Roles in Fourth Layoff in 12 Months

The Embracer-owned Tomb Raider studio says it will provide severance and remains fully committed to Legacy of Atlantis and Catalyst.

Overview

  • The reduction affects development and central operations staff, with severance and job-placement assistance offered, according to the company's LinkedIn statement.
  • It is the fourth layoff in a year—after 17 cuts in March 2025, unspecified cuts in August, and about 30 in November—bringing publicly reported departures to at least roughly 67.
  • Crystal Dynamics says work continues on two Tomb Raider projects: the Unreal Engine 5 remake Legacy of Atlantis slated for later in 2026, and the new entry Catalyst targeted for 2027 without a firm date.
  • Amazon Game Studios is set to publish both titles and has said it remains committed even as it scales back big-budget game ambitions.
  • The latest cuts follow broader turbulence tied to Embracer Group's restructuring and Microsoft's cancellation of the Perfect Dark reboot that Crystal Dynamics had been co-developing.