Crystal Dynamics announces fourth round of layoffs in 12 months

Crystal Dynamics, the studio behind Tomb Raider, has laid off 20 team members in its fourth round of job cuts within a year. The studio stated the changes align team structures with project phases, while reaffirming commitment to ongoing Tomb Raider titles. Development on Tomb Raider: Catalyst and the Legacy of Atlantis remake continues uninterrupted.

Crystal Dynamics shared news of the layoffs on LinkedIn last night. The move affects 20 staff members across development and central operations roles. This marks the fourth round of layoffs at the studio in 12 months, following cuts in November, August, and March of the previous year. The studio described it as a difficult decision, especially after last year's restructuring. A statement read: 'This is a difficult day for our studio, and we never make these decisions lightly, particularly after the restructuring we underwent last year.' It explained that as current projects advance, the team structure must align with long-term goals. While efforts were made to reassign staff, some departures became necessary. Crystal Dynamics addressed concerns about future Tomb Raider games, stating it remains 'fully committed' to announced titles, including the new Tomb Raider: Catalyst and the remake titled Legacy of Atlantis. The studio emphasized supporting departing colleagues as its immediate priority. Tomb Raider: Catalyst is slated for release next year on PlayStation 5, Xbox Series X/S, and Steam. It features Lara Croft in Northern India amid a mythical cataclysm unleashing ancient secrets. Prior to that, Tomb Raider: Legacy of Atlantis revisits the original game's story, with Lara traveling countries in pursuit of the Scion of Atlantis.

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Illustration of Lara Croft in Atlantis ruins for Tomb Raider remake news.
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Tomb Raider remake Legacy of Atlantis set for 2027

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Tomb Raider: Legacy of Atlantis, a full remake of the 1996 original, will launch on February 12, 2027. The game was developed by Flying Wild Hog with guidance from Crystal Dynamics using Unreal Engine 5. It will be available on PS5, Xbox Series X/S, Switch 2, and PC.

Developers Crystal Dynamics and Flying Wild Hog used generative AI to create placeholder assets for Tomb Raider: Legacy of Atlantis. The tool helped visualize ideas during early level design.

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A new trailer for Tomb Raider: Legacy of Atlantis premiered during the PlayStation State of Play on June 2. The game has been delayed from its original 2026 release window.

Chicago-based game studio Iron Galaxy has laid off dozens of employees as it adapts to changes in the gaming industry. The announcement follows the release of the Tony Hawk’s Pro Skater 3 + 4 remaster collection. A source indicated the cuts could affect up to 90 staff members.

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Microsoft is reportedly weighing the closure of Undead Labs, the studio behind the State of Decay series, as part of a broader reset of its Xbox division. The move could affect 110 jobs at the studio, which is currently developing State of Decay 3.

Developers at Ubisoft Barcelona have begun a strike in response to planned job cuts at the studio. The action, organized by a Spanish union, involves staff leaving work on specific afternoons through mid-July.

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