Lead: Ninja Theory layoffs appear to be underway, with more than a dozen staff at the Hellblade studio saying on LinkedIn that their jobs are at risk or already gone, two weeks after Xbox said it would consult on closing the studio.
What happened
On September 22, 2026, Xbox chief content officer Matt Booty published “Continuing Our Reset” on Xbox Wire, announcing 268 more job cuts across Microsoft’s game studios. In the same post he said attempts to sell or spin off Ninja Theory had failed. “Unfortunately, two separate agreements for Ninja Theory fell through,” Booty wrote, adding that Xbox would “begin consultation with employees on a proposed closure while continuing to explore other paths forward.” We covered that announcement in our Activision Halo and Xbox studio reset report.
On Monday, October 5, journalist Chris Kerr flagged on Bluesky that Ninja Theory employees had begun posting about leaving the studio. VGC says it verified the posts. Those named across VGC, GamesBeat, and Beebom include gameplay programmer Katrin Mair, technical sound designer Alessio Mellina, technical director Loong-Wei Ding, principal programmer Stefano Prosperi, and performance capture technicians Rachel Kimber and Xoe Subari, among others.
The exact stage of the process is where outlets differ. VGC, GamesBeat, and Aftermath describe layoffs as having started, with some staff saying their roles have already ended. This Week in Videogames counted 13 LinkedIn posts from full-time employees dated from September 28 onward, but says it understands the formal consultation is still running and no layoffs have been initiated yet. Under UK employment law, staff are placed “at risk of redundancy” during consultation before roles are formally cut, which may explain the mixed wording. None of the reports cite a new Xbox statement beyond the September blog post.
Mair’s post captured the mood: “It’s incredibly sad knowing that we won’t get to finish what we were working on.”
Why Ninja Theory layoffs matter
Ninja Theory is one of the most distinctive studios Microsoft owns. The Cambridge, UK team built Heavenly Sword, Enslaved: Odyssey to the West, and DmC: Devil May Cry before Hellblade: Senua’s Sacrifice turned it into a reference point for performance capture and for portraying psychosis in games. Microsoft bought the studio in 2018, and Senua’s Saga: Hellblade II shipped in 2024.
The bigger issue is Senua, the third Hellblade game, which Xbox revealed at its June 2026 showcase with a 2027 target. Its future has not been officially addressed, but several employee posts suggest the team does not expect to finish it. VGC also points to an earlier Game File report claiming Xbox was already planning to sell the studio when it showed the trailer, apparently to attract buyers. That claim remains a report, not something Microsoft has confirmed.
For players, this is the moment Xbox’s “reset” stops being an org chart and starts costing actual games. Compulsion, Double Fine, and Undead Labs found routes to independence; Ninja Theory, for now, did not, and Arkane’s consultation is still running through the end of the year.
What we know vs what is rumored
- Confirmed: Xbox said on September 22 that two agreements for Ninja Theory fell through and that it would consult staff on a proposed closure while exploring other options.
- Confirmed: Multiple Ninja Theory employees have publicly posted that they are at risk of redundancy or have left, as verified by VGC and reported by GamesBeat, Aftermath, and This Week in Videogames.
- Unconfirmed: Whether formal layoffs have been executed or the studio is still in consultation; outlets disagree.
- Unconfirmed: Final closure, total headcount affected, and whether Senua is cancelled.
- Unconfirmed: Game File’s report that Xbox was already planning a sale when Senua was announced.
What happens next
The UK consultation process has to conclude before any closure becomes final, and Xbox has said it is still “exploring other paths forward,” so a last-minute buyer is not formally off the table. Watch Xbox Wire and Ninja Theory’s own channels for an official decision on the studio and on Senua. We will update if Microsoft confirms a closure or a sale.
Sources: VGC — Hellblade studio Ninja Theory has started laying off staff; GamesBeat — Ninja Theory layoffs reportedly begin as Xbox’s shutdown takes effect; Aftermath — Ninja Theory Laying Off Employees Ahead Of Possible Closure; This Week in Videogames — Ninja Theory Employees Confirm Redundancy Process is Underway; Xbox Wire — Continuing Our Reset