Crystal Dynamics cuts staff as Embracer Group studio layoffs continue

There's a side mission in Cyberpunk 2077 that involves abducting a notorious union-breaker. One wonders if any of the people who worked on that have joined the union founded by CD Projekt RED employees this month. The union is part of the larger Polish worker's organisation OZZ Inicjatywa Pracownicza, and comes in response to CD Projekt's firing around 100 employees in July due to "overstaffing". Its membership is anonymous and open to people in the industry who aren't employed by the Witcher and Cyberpunk studio, but are thinking about forming a union in their own workplace.

The Wolf Among Us 2 developer Telltale Games confirmed layoffs at the company “due to market conditions,” but said all its in-development projects are still in the works.

Epic Games CEO Tim Sweeney has admitted the company was grappling with a "financial problem" 10 weeks before announcing sweeping layoffs, in an unexpected admission during Unreal Fest earlier this week.

The games industry is going through a time of troubles right now with multiple studios laying off their staff members recently, and it seems no one is really safe. Reports today show layoffs from Sony studio Naughty Dog, as well as at Twitch, while yesterday saw layoffs at Team17.

First announced two years ago, at Sony’s showcase in 2021,Star Wars: The Old Republic’s remake is seemingly being officially scrubbed from around the internet. Could the project be another casualty as part of Embracer Group’s reorganization?

Crystal Dynamics, the developer behind the rebooted Tomb Raider franchise, has been hit with a round of layoffs. This follows the ongoing crumbling of Embracer Group, which announced a large-scale restructuring of its assets in June, resulting in layoffs, closures and cancellations.

In the aftermath of Embracer Group failing to close a deal with Savvy Group worth $2 billion earlier this year, the company has suffered some financial setbacks. In June, it revealed that it was instituting a restructuring program that would entail layoffs, studio closures, and upcoming projects being cancelled.

Embracer Group has quite a few studios under its label. The company is now seemingly in a bind, ranging from various acquisitions and mergers. Financial struggles could be a real issue. In fact, it wasn’t long ago now that we had word of Volition Games shutting down completely. While Embracer Group is striving to restructure its plans going forward, a new round of layoffs has just occurred for another studio under their control. The latest was Crystal Dynamics, who were forced to see several jobs get cut. 

Crystal Dynamics, the game development studio best known for its work on the Tomb Raider, Gex, and Legacy of Kain series, confirmed yesterday (Wednesday, September 20) that it has parted ways with 10 employees “due to an internal restructuring”.

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Crystal Dynamics has become the latest studio owned by Embracer Group to be hit with layoffs.

The Embracer Group has been struggling with financial issues in recent months, having failed to close an undisclosed deal worth $2 billion earlier in the year, in the wake of which the company announced that it would be shuttering studios, laying off employees, and cancelling unannounced games as part of a widespread restructuring program.