Crytek cites "unfavorable market dynamics" in laying off 60 devs and putting next Crysis game on hold
Crytek has announced mass layoffs that will reduce its workforce by 15%. The German developer also put the development of the next Crysis game on hold.
In a statement on social media, Crytek said it will lay off around 60 of its 400 employees. The company cited “unfavorable market dynamics” that have hit the games industry over the past several years as the main reason behind this decision.
Crytek tried to cut operating expenses and reduce development costs by freezing the next Crysis project in the third quarter of 2024 and trying to move its developers to the Hunt: Showdown 1896 team. However, these efforts weren’t enough to make the studio financially sustainable.
All the affected employees, which include developers and shared services teams, will receive severance packages and career assistance services.
Following the job cuts, Crytek will focus on expanding Hunt: Showdown 1896 and supporting its CryEngine.
— Crytek (@Crytek) February 12, 2025
The past few years have been marked by mass layoffs at various game companies. In 2024 alone, at least 15,000 games industry professionals lost their jobs, compared around 10,500 in 2023. One of the biggest layoffs took place at Microsoft Gaming (2,800 employees), Unity (1,800), Sony Interactive Entertainment (1,339), Tencent (862), and Electronic Arts (670).