Crytek is laying off 15 percent of its workforce and pausing production on Crysis 4.
The company broke the news on X and explained the layoffs will impact its development and shared services teams.
The German studio currently has around 400 employees, meaning around 60 people could lose their jobs.
Crytek claimed the layoffs are a result of the "complex, unfavorable market dynamics that have hit our industry these past several years.".
"After putting the development of the next Crysis game on hold in Q3 2024, we have been trying to shift developers over to Hunt: Showdown 1896.
"While Hunt: Showdown 1896 is still growing, Crytek cannot continue as before and remain financially sustainable.
"We will continue to expand and evolve Hunt: Showdown 1896 with great content and drive our strategy for our engine CryEngine. »