Ninja Theory Developers Announce They Are Facing Redundancy, as the Studio Starts Laying Off Staff Following Widespread Xbox Cuts
Two failed sale deals left the Hellblade studio in UK consultation as Xbox’s restructuring pushes about 3,200 job cuts across its business.
- On Monday, October 5, 2026, Ninja Theory employees began reporting layoffs after Xbox COO Matt Booty confirmed two sale agreements "fell through," pushing the studio toward closure.
- Xbox initiated a massive restructuring process to eliminate about 3,200 positions across its business, and after failing to secure a buyer for Ninja Theory, the company began a consultation process with the studio.
- Principle Programmer Stefano Prosperi shared on LinkedIn that after 13 years, "it's difficult to process the idea that this chapter may be coming to an end," expressing both sadness and gratitude for his time at the studio.
- Separation processes are also impacting Arkane Lyon, Undead Labs, and Compulsion Games, while Double Fine successfully transitioned to independence, highlighting the varied outcomes across Xbox's studio restructuring.
- Just four months ago, Ninja Theory revealed a new game titled Senua at the Xbox Games Showcase 2026 to attract buyer interest; the studio's presumed closure now leaves the title's development status uncertain.
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Many members of the team leave the company as a result of the downsizing at Xbox.
NewsGaming.net The layoffs start at Ninja Theory, a few days after being dropped by Xbox Some ex-Xbox Game Studios have been able to regain their independence by losing some feathers, but [...] The article The layoffs start at Ninja Theory, a few days after being dropped by Xbox is available on NewsGaming.net
In addition to classical filling words, the word "dismissals" is one of the words I wrote most often this year. At least that's how it seems to me. Today I can add a line on this list, because Ninja Theory lets some employees go. The studio is especially known for the two Hellblade parts, in which you travel as Senua through a mysterious and gloomy landscape in northern Europe and solve puzzles with voices in your head. Read more
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