Crytek Shutters Five Studios Following Reports Of Troubling Payroll Issues

It seems as though Crytek is having a cash flow problem again. The company announced on its website that it is making a "series of changes to its future business plans" as it looks to refocus its efforts on developing games and game development technology. As such, it is planning to shutter five of its seven studios, leaving its Frankfurt and Kiev locations as the pillars that will prop the company up going forward.


Crytek will continue to focus on and develop CryEngine, its popular game engine that has both been used to create titles in-house (Far Cry, Crysis, Ryse: Son of Rome and so forth) and licensed to third-parties (Sniper: Ghost Warrior 2 and 3, Evolve, Squadron 42, and others). That means developers big and small can expected regular engine updates.

"Undergoing such transitions is far from easy, and we’d like to sincerely thank each and every staff member–past and present–for their hard work and commitment to Crytek. These changes are part of the essential steps we are taking to ensure Crytek is a healthy and sustainable business moving forward that can continue to attract and nurture our industry’s top talent. The reasons for this have been communicated internally along the way," Crytek co-founder and managing director Avni Yerli said in a statement.
Yerli did not address claims on social media that some employees have not been paid in over a month. One full-time worker at Crytek told Polygon that the wait for a paycheck has been more than two months. He added that in the past five months, Crytek has regularly been in late in paying employees by anywhere from two to four weeks

Crytek's struggles are not new. Back in 2014, the company sold off assets and studios to stay afloat. There were complaints of delayed payment to workers back then as well, which the CEO acknowledged as a means of keeping the company out of bankruptcy.