The weekly news cycle has been marred by video game layoffs as of late, and this time it hits Crystal Dynamics once again. The company confirmed that a number of talented colleagues have been let go, citing the usual reason of restructuring as the reason behind sudden cuts in personnel.
An official statement released on Thursday emphasized gratitude for the employees that were affected, framing the decision as a difficult but sadly necessary step to keep the company healthy.
If you’ve kept up with the recent gaming layoffs in the industry, this corporate language might seem oddly familiar to you. The reality is, the gaming industry is a harsh landscape and these phrases don’t make the fact that skilled devs might suddenly find themselves without a job any less painful.
This isn’t just a Crystal Dynamics problem, it really is part of a wider issue. Experienced studios are tightening budgets and therefore the first resource that tends to get hit is the staff. Sadly, good talent is left on the side of the road and pays the price for in an unforgiving industry.
Crystal Dynamics Layoffs
To get into the nitty-gritty of things, let’s dive into the Crystal Dynamics statement. In this LinkedIn announcement, Crystal Dynamics re-emphasized, that the layoffs were part of an effort to restructure the company in order to ensure long term health for the veteran studio.
Crystal Dynamics did acknowledge that support would be provided for the unfortunate souls affected, including monetary solutions such as severance packages or even assistance to transition.
In the statement, Crystal Dynamics said the latest round of layoffs were “not made lightly,” but were “necessary” to ensure the “long-term health of our studio and core creative priorities in a continually shifting market.”
It continues by saying: “To those impacted — we recognize and thank you for your hard work, talent, and passion. We are committed to offering the full extent of support and resources at our disposal during this transition.
“To our teams, players, and partners, thank you for your continued support as we build a creative, sustainable, and resilient tomorrow together. This includes the future of Tomb Raider, which remains unaffected by this decision.”
It marks the latest round of layoffs for Crystal Dynamics, who cited the same restructuring reasons when letting go 10 employees in September 2023, and later 17 people in March 2025.
The History of Crystal Dynamics
Crystal Dynamics are by no means a small, inexperienced team, they’re one of the most popular game developers in the industry.
Just in recent gaming history, they have been responsible for pushing out the Tomb Raider franchise to a newer audience, and their recent collab on Perfect Dark hasn’t gone unnoticed either.
Having said all that, whatever pedigree a studio has, the gaming landscape is ever changing – and Crystal Dynamics isn’t immune to that.
The news comes as union group United Videogame Workers demand safeguarding around job security, and protection from unsustainable 100-hour work weeks.
Are Gaming Layoffs Set to Continue?
Crystal Dynamics isn’t dead, nor do experts believe the consequences of these actions will necessarily impact the studio in a negative way.
But sadly, the news is a sobering reminder that even household names aren’t insulated from the volatility of the industry. On top of that, the devs affected now have to look for other means to give into their creative urge, and, to make a living most of all.
In the wake of Gamescom this news is a behind-the-curtain look at the uglier side of game development, and video game layoffs will likely continue to be common place as costs rise and AI tools develop.
