Crystal Dynamics, known for its work on the Tomb Raider franchise, has announced an unspecified number of layoffs, citing “evolving business conditions.” In a LinkedIn post, the company stated the decision was “necessary…to ensure the long-term health of our studio and core creative priorities in a continually shifting market.”

The studio was acquired by Embracer Group in 2022. Embracer Group underwent its own layoffs in 2023, followed by restructuring last year. Despite the layoffs, Crystal Dynamics affirmed that the development of the new Tomb Raider game will not be affected.

Crystal Dynamics had previously been assisting The Initiative with the Perfect Dark reboot. However, that project was canceled, and The Initiative was subsequently shut down during a wave of cuts at Microsoft earlier this year. It remains unclear whether the cancellation of Perfect Dark contributed to the recent layoffs at Crystal Dynamics.