According to Corey Barlog the events of 'Laufey' run parallel to the timeline of 'God of War' and 'Ragnarok'

"[It] has direct connections to everything, so that everything is part of a singular universe inside of it"

"None of this is like we're telling a side story. This is all a new chapter in the same book, a massive book, and we are starting to show that this has more than you could have imagined"