After Two Failed Sales, Hellblade Studio Ninja Theory Begins Layoffs as Xbox Cuts Deepen

Ninja Theory layoffs have begun in earnest, as employees at the acclaimed Hellblade studio started confirming on LinkedIn this week that their jobs are at risk or already gone. The announcements mark the grim culmination of months of uncertainty for the UK developer, which Microsoft had been quietly trying to offload to a buyer since announcing a sweeping “reset” of its Xbox division back in July.

According to posts spotted by journalist Chris Kerr and reported across multiple outlets, staff including gameplay programmer Katrin Mair, technical director Loong-Wei Ding, performance capture specialist Xoe Suvari, principal sound designer Daniele Galante, and principal programmer Stefano Prosperi have either been made redundant or placed at risk of redundancy. Technical sound designer Alessio Mellina, who had spent 12 years at the studio, said he is “on the lookout for new opportunities” after being told his role is at risk. The exact number of people affected by the Ninja Theory layoffs has not been officially disclosed, and the dripfeed of individual posts suggests staff may be learning their fate in staggered waves.

How the Ninja Theory layoffs came about

The studio’s troubles trace back to Xbox’s July announcement of a major restructuring that included roughly 3,200 planned job cuts and the shuttering or sale of several studios. Ninja Theory was among those caught up in the overhaul, alongside Double Fine, Arkane, Undead Labs, and Compulsion. Unlike Double Fine, which was eventually spun off as an independent studio, Microsoft instead sought to sell Ninja Theory outright so it could continue developing Senua, the third entry in the Hellblade series that had only just been revealed at the June Xbox Games Showcase.

That plan fell apart. In a letter from Xbox COO Matt Booty on September 22, the company confirmed that “two separate agreements for Ninja Theory fell through,” pushing the studio toward formal closure and the start of a consultation process with staff. Booty insisted Xbox would “continue to explore other paths forward,” leaving the studio’s ultimate survival technically undecided even as redundancy notices began circulating.

Now, roughly two weeks later, the Ninja Theory layoffs appear to be moving from threat to reality. Mair, who had been at the studio for four years, wrote that “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.”

Developers reflect on the studio’s legacy

Several of the departing staff used their posts to look back fondly on their time at the studio despite the circumstances. Suvari, quoting a colleague, wrote: “Even if I knew how it would end, I would do it again.” Prosperi, reflecting on 13 years at the company, said he felt “incredibly fortunate” to have worked with people “at the very top of their craft” on a studio that “created things we genuinely cared about.”

Galante, who had been with Ninja Theory for almost nine years, recalled working on the very first scene of the original Hellblade and said he felt “ready for my next adventure” despite the sadness of the moment. Other developers who posted about redundancy or job searches last week include sound designer Matteo Tummino, senior technical artist Matt Le-Fevre, and character artist Pietro Berto.

Ninja Theory had built a strong reputation in recent years as one of the UK’s standout studios, largely on the strength of the Hellblade series. Senua’s Saga: Hellblade II earned widespread critical acclaim following its 2024 release, with reviewers praising its visual and narrative achievements. That legacy makes the current wave of layoffs especially bitter for a team that had, until recently, appeared to be thriving under Xbox’s ownership.

Part of a wider wave of Xbox cuts

The Ninja Theory layoffs are not an isolated incident but the latest chapter in a broader restructuring that has rattled Microsoft’s gaming division throughout the back half of 2026. In September, Xbox transferred the storied Rare studio and ownership of the Halo franchise to Activision, while also enacting significant cuts at Halo Studios. Reports of further layoffs across other Xbox-owned studios have left employees elsewhere bracing for similar news, with the overall reorganization still described as ongoing and unresolved.

For now, the fate of Senua, the game Ninja Theory’s team had been building before the cuts began, remains unconfirmed. With so many of the developers who worked on it departing or facing redundancy, its future looks increasingly uncertain, even as Microsoft maintains it is still weighing options for the studio beyond closure.

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