Ninja Theory Layoffs Begin as Staff Confirm Job Losses Following Xbox Closure Warning

Staff at Microsoft-owned Ninja Theory have begun losing their jobs after two agreements concerning the future of the Hellblade developer fell through, leaving the studio facing a potential closure.

The layoffs come amid Microsoft's wider restructuring of Xbox, which included 1,600 job cuts announced in July and a further 268 roles eliminated in September. Microsoft has not said that Ninja Theory's latest staff departures are part of the separate 268-role reduction.

In a memo detailing the September restructuring, Xbox Chief Content Officer Matt Booty explained that negotiations to keep Ninja Theory running or spin it off had failed.

Last month, Booty said that 'unfortunately, two separate agreements for Ninja Theory fell through', adding that Microsoft would 'begin consultation with employees on a proposed closure while continuing to explore other paths forward.'

The latest developments indicate that the consultation process has now begun to affect individual employees, with developers publicly confirming that their roles have either disappeared or are at risk of redundancy.

Ninja Theory Staff Face Redundancies

Following reports first flagged by reporter Chris Kerr and confirmed by VGC, several Ninja Theory employees have now posted on LinkedIn confirming that they have either been made redundant or are facing redundancy.

Those affected include gameplay programmer Katrin Mair, technical director Loong-Wei Ding, sound designer Matteo Tummino and several other developers across programming, art, audio and technical roles.

VGC reported that Alessio Mellina, Xoe Subari, Matt Le-Fevre, Pietro Berto, Justin Pedersen and Daniele Galante were also among those who confirmed that their jobs were at risk or had ended.

Mair, who spent four years at the studio, said it was 'hard to put into words how much this place and the people in it have meant to me', adding that she had 'learned an incredible amount' and grown as a programmer during her time there.

But the developer's comments also offered a stark indication of what the layoffs could mean for work that was still in progress.

'It's incredibly sad knowing that we won't get to finish what we were working on,' Mair wrote. '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.'

Senua's Future Now Hangs in the Balance

The staff departures also raise questions over the future of Senua, the third instalment in Ninja Theory's Hellblade franchise, which was unveiled at the June 2026 Xbox Games Showcase with a planned 2027 release.

Microsoft has not announced that Senua has been cancelled or delayed, leaving the game's status uncertain as its developer goes through a proposed closure and staff departures.

Game File previously reported that Microsoft had already planned to 'sunset or split' with Ninja Theory when Senua was revealed, citing a source familiar with the company's plans. According to that report, the thinking was that announcing the new game could help attract investor interest in the studio.

That report was published before Microsoft confirmed in September that two agreements concerning Ninja Theory had fallen through. Microsoft has not publicly identified the parties involved in those agreements or explained why they collapsed.

The situation also comes during a broader restructuring at Xbox, with Microsoft continuing to cut jobs, reorganise studios and pursue changes to its first-party portfolio.

Hellblade Studio's Future Remains Uncertain

The potential closure of Ninja Theory would end the studio's current run as a Microsoft-owned developer, but Microsoft has not yet confirmed that the studio will shut down.

Instead, the company has said it is continuing to explore other paths forward after two agreements fell through.

With staff now reporting job losses and redundancy risks, and Ninja Theory's latest Hellblade project facing an uncertain future, the studio's fate remains unresolved.