Crystal Dynamics, which was co-developing the cancelled Perfect Dark reboot, has imposed another round of layoffs today.
The turbulence shaking the games industry in 2024 hasn’t let up, and one of the most storied studios is once again in the middle of it. Crystal Dynamics, the developer best known for the Tomb Raider series, confirmed that it has carried out a new round of layoffs. The exact number of people affected hasn’t been made public, but the cuts continue a grim pattern of job losses that has swept across major publishers and studios since the summer.
Crystal Dynamics' statement
In a message shared on LinkedIn, the studio described the layoffs as the result of “evolving business conditions.”
The post read: Today we made the very difficult decision to part ways with a number of our talented colleagues
as the result of evolving business conditions. This decision was not made lightly. It was necessary, however,
to ensure the long-term health of our studio and core creative priorities in a continually shifting market.
This is not the first time Crystal Dynamics has been forced to reduce its workforce in 2024. Back in March, the studio confirmed that 17 employees had been let go, also citing the need to safeguard the company’s future. The latest announcement means two rounds of layoffs in less than a year, painting a worrying picture of instability for the team that once helped define modern action-adventure games.
The Perfect Dark connection
The shadow of Microsoft looms heavily over this news. In July, Microsoft cut roughly 9,000 jobs across its divisions, a massive restructuring that also included the cancellation of Perfect Dark, a high-profile reboot led by the now-closed studio The Initiative. Crystal Dynamics had been brought on as co-developer in 2021, working alongside The Initiative to bring the project to life. With the cancellation of Perfect Dark, many developers who had dedicated years to the reboot suddenly found themselves without work.
Several of the people recently laid off at Crystal Dynamics have confirmed on LinkedIn that they had been working on Perfect Dark. Narrative designer Leilan Nishi was among those who connected her departure directly to the collapse of the project, writing that she was let go “in the aftermath of Perfect Dark's cancellation.” For these individuals, the July cuts at Microsoft have continued to ripple outward months later, leading to another wave of industry job losses.
Support for those affected
Crystal Dynamics, which is owned by the Embracer Group, has promised to provide those impacted with “the full extent of support
and resources at our disposal.” The studio also issued a message of gratitude to its remaining employees and fans:
Thank you for your continued support as we build a creative, sustainable, and resilient tomorrow together.
What about Tomb Raider?
One reassurance offered was that the future of the Tomb Raider franchise would not be affected by these layoffs. That said, fans are still waiting for concrete news. The most recent game in the mainline series, Shadow of the Tomb Raider, was released in 2018. Since then, the only hint of what’s next came with the “Unified Lara” artwork shown in early 2024, which teased a design meant to bring together the classic and reboot versions of Lara Croft.
While the character has popped up in crossover appearances — including Pinball FX and World of Tanks — there’s still no word on when fans will see a brand-new adventure. Given the ongoing instability and the layoffs, speculation about timelines and scope is inevitable, even if Crystal Dynamics insists Lara Croft remains a central priority.
A wider industry pattern
The situation at Crystal Dynamics echoes similar stories across the industry. Earlier this year, Romero Games, the studio founded by John and Brenda Romero, announced it was canceling an in-development FPS and laying off staff after losing project funding. While Romero Games is not connected to Microsoft, the circumstances are painfully familiar: ambitious projects cut short, employees left scrambling, and entire teams struggling to adapt in a shifting market.
Microsoft’s decision to cancel Perfect Dark has clearly created a domino effect. The Initiative was shuttered outright, and Crystal Dynamics, despite its pedigree and history, is now feeling the consequences. For developers, these layoffs represent not just lost jobs but also the evaporation of years of effort poured into projects that will never reach players. For players, it raises uncomfortable questions about how unstable even major studios have become in today’s gaming economy.
The uncertain road ahead
Layoffs are sadly becoming the norm rather than the exception across gaming in 2024. Between shrinking budgets, shifting corporate priorities, and a volatile global market, the industry has been reshaped in ways that are still unfolding. Crystal Dynamics’ struggles are just one chapter in a much larger story of upheaval that has claimed jobs at virtually every level of game development, from small indie teams to tech giants.
For now, Crystal Dynamics insists its long-term health is intact and that beloved franchises like Tomb Raider are safe. But the repeated cuts and the studio’s close ties to canceled projects suggest that even established names are not immune to the cascading aftershocks of Microsoft’s decisions in July. As the dust settles, the real question is how many more studios will still be standing once the waves of layoffs finally stop.
