Embracer studio Crystal Dynamics continues steady stream of layoffs
Embracer-owned Tomb Raider developer Crystal Dynamics has laid off 20 employees.
The studio has made a number of job cuts since being acquired by Embracer Group for $300 million in 2022 alongside Eidos-Montreal, Square Enix Montreal, and major franchises such as Deus Ex and Tomb Raider.
In a statement shared on LinkedIn, the company explained the latest round of layoffs will impact development personnel and central operations staff.
"This is a difficult day for our studio, and we never make these decisions lightly, particularly after the restructuring we underwent last year," reads the statement.
"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. While we always strive to transition our people into new roles whenever possible, we have unfortunately reached a point where these departures are necessary."
Crystal Dynamics said impacted staff will receive severance and job placement assistance. It also reiterated its commitment to the development of upcoming titles Tomb Raider Catalyst and Tomb Raider: Legacy of Atlantis.
The studio previously laid off 30 employees in November 2025. It said those cuts were made to adapt to "the realities of the industry." Crystal Dynamics also confirmed layoffs in August 2025, March 2025, and September 2023.
Crystal Dynamics parent company Embracer embarked on a brutal restructuring program shortly after acquiring the studio, which resulted in the widespread layoffs, studio closures, divestments, and project cancellations. The Swedish conglomerate has since attempted to rightsize by splitting into three standalone publicly-traded entities.
