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Ninja Theory Layoffs: Hellblade Developers Say Farewells Amid Xbox Reset

Xbox says it will consult Ninja Theory employees on a proposed closure after two agreements fell through. Employee posts report job losses or risk, but the studio’s final future remains unresolved.
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Ninja Theory’s future is unresolved. On September 22, 2026, Xbox said two proposed agreements for the Cambridge studio had fallen through and that it would consult employees on a proposed closure while exploring other options. By October 5, employees were posting that they had lost jobs or were at risk, according to PC Gamer. Those reports do not mean every affected employee has been dismissed, or that Xbox has confirmed the studio’s closure.

What is happening at Ninja Theory?

Xbox’s latest stated position is a proposed closure under employee consultation—not a completed shutdown. In an update to employees on September 22, Xbox COO Matt Booty said: “Unfortunately, two separate agreements for Ninja Theory fell through.” He added: “We will now begin consultation with employees on a proposed closure while continuing to explore other paths forward.” Xbox’s update leaves open the possibility of another outcome; it does not announce a final decision.

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That distinction matters when interpreting the farewell posts. On October 5, PC Gamer reported that multiple Ninja Theory employees had posted on LinkedIn that they had lost their jobs or were at risk. The report quoted gameplay programmer Katrin Mair saying: “It’s incredibly sad knowing that we won’t get to finish what we were working on,” and that she wished the team had had the chance to see what its work could become. These are reports about individual employees, not a confirmed tally of completed layoffs across the studio. PC Gamer’s report notes that UK consultation is required before actual layoffs.

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How the Xbox plans changed

The proposed closure followed an earlier plan to move Ninja Theory into new ownership. The sequence clarifies why the studio’s status is not settled:

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  1. July 6, 2026 — planned transfer: Xbox CEO Asha Sharma told employees that Ninja Theory had entered terms to join new ownership, with funding to complete and grow Senua. That was a plan, not a completed transfer. Sharma also said Xbox expected approximately 3,200 role reductions across FY27, including approximately 1,600 immediately; those were company-wide restructuring figures, not Ninja Theory-specific cuts.
  2. September 22, 2026 — agreements fail: Xbox said two separate agreements for the studio had fallen through and announced consultation on a proposed closure, while saying it would keep exploring other paths.
  3. October 5, 2026 — employee posts reported: PC Gamer described staff posts saying some employees had lost jobs or were at risk. Consultation and reports of individual departures do not establish the final outcome for the studio or all its staff.

On September 22, Xbox also announced 268 further role eliminations across Halo Studios, other first-party studios, and Xbox Game Studios management and central functions. That figure belongs to the wider Xbox reset; Xbox did not identify it as a Ninja Theory layoff count.

What this means for the Hellblade developers

Ninja Theory is the Cambridge studio behind Hellblade: Senua’s Sacrifice and Senua’s Saga: Hellblade II, as well as games including DmC: Devil May Cry and Heavenly Sword. The studio’s own About page describes a team of “just over 100 people,” but it is undated and should not be treated as a current headcount or as the number of people affected by the consultation. Ninja Theory’s studio page identifies its games and gives that general team description.

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The reports of farewells point to disruption and uncertainty for individual developers, while Xbox’s statement leaves the studio’s final fate open. No verified Ninja Theory-specific total for jobs lost has been established in the cited statements and reporting.

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What remains unknown

  • Whether Xbox will ultimately close Ninja Theory or reach another arrangement.
  • How many employees, if any, will be dismissed once consultation concludes.
  • Whether the projects employees described in their farewell posts will be completed or released.

Until Xbox announces a final decision, “proposed closure” is the accurate description. The Xbox figures of approximately 3,200 and 268 concern broader restructuring, not a disclosed Ninja Theory headcount.

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