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Ninja Theory Layoffs Begin as Proposed Closure Looms: What’s Confirmed

By Freedom251 Team · · 3 min read

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Ninja Theory has begun seeing employee-level job-loss reports, but the studio has not been confirmed closed. Xbox says it is consulting employees on a proposed closure while continuing to explore other options. As of October 7, 2026, the final outcome for the studio and its announced game Senua remains unconfirmed.

What is happening at Ninja Theory?

On September 22, Xbox said two separate agreements for Ninja Theory had fallen through. It announced consultation with employees on a proposed closure, while saying it would continue exploring other paths forward. Xbox’s statement, attributed to Matt Booty’s staff update, says: “Unfortunately, two separate agreements for Ninja Theory fell through. We will now begin consultation with employees on a proposed closure while continuing to explore other paths forward.” Xbox Wire’s September 22 update does not identify the other parties or explain why the agreements failed.

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That wording matters: a proposed closure is not a completed closure. The sources available as of October 7 do not confirm that Ninja Theory has formally shut down.

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Have Ninja Theory layoffs started?

There are employee-level reports of both redundancy risk and completed job losses. On October 5, Video Games Chronicle said it verified LinkedIn announcements from developers and named nine employees who had confirmed that their roles were at risk or had ended. That is not a complete studio-wide count, and the reports distinguish between employees facing redundancy and those who say they have already lost their jobs. VGC’s October 5 report covers those accounts.

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Consultation is not the same as a final dismissal decision for every employee. PC Gamer notes that consultation is legally required in the UK before actual layoffs and that employees in consultation are not certain to be laid off. The careful summary is that some Ninja Theory staff have reported losing their jobs, while others are at risk; the final number and outcome are not established. PC Gamer’s October 5 report explains the consultation distinction.

How did the situation change?

Date What was announced or reported
July 6, 2026 Xbox said Ninja Theory had entered terms to join new ownership, with funding intended to complete and grow Senua. The announcement also covered Undead Labs. Xbox Wire’s July 6 update
September 22, 2026 Xbox said two separate agreements for Ninja Theory had fallen through and that it would consult employees on a proposed closure while continuing to explore other options. Xbox Wire’s September 22 update
October 5, 2026 VGC reported verified employee announcements of redundancy risk or job loss; PC Gamer also reported employee accounts and discussed the consultation process. VGC · PC Gamer
As of October 7, 2026 The sources cited here do not confirm a formal studio closure, a final affected-employee total, the identity of prospective buyers, or the outcome for Senua.

What happens to Senua?

Its status is not officially confirmed in the cited reporting. VGC described Senua as the third game in the Hellblade series and reported that its fate had not been officially confirmed as of October 5. That means it would be inaccurate to call the game canceled or to say it will continue. One developer, gameplay programmer Katrin Mair, told VGC: “It’s incredibly sad knowing that we won’t get to finish what we were working on. So much care, talent and effort went into it, and I really wish we’d had the chance to see what it could have become.” The comment conveys an employee’s view, but does not amount to an official announcement about the game’s future. VGC’s report

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What remains unconfirmed?

  • Whether the proposed closure will proceed or another path will be found.
  • How many Ninja Theory employees will ultimately lose their jobs; the nine people named by VGC are not a complete count.
  • Who the potential new owners were, or why the two agreements fell through.
  • Whether Senua will be completed, paused, canceled, or handled another way.

Xbox’s September update also cited 268 roles being eliminated across Halo Studios, other first-party studios, and Xbox Game Studios management and central functions. That figure is a broader restructuring number, not a Ninja Theory-specific layoff total. Xbox Wire’s update

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