Ninja Theory’s staff are facing redundancy after a consultation process with parent company Xbox descended into concrete layoffs, marking another painful chapter in Microsoft’s sweeping restructuring of its gaming division. The announcement arrives amid widespread job cuts across the Xbox ecosystem, leaving developers at the UK-based studio—which built its reputation on the acclaimed Hellblade series—to say goodbye to colleagues they have worked alongside for years.
The situation was first flagged by journalist Chris Kerr, who noted that Ninja Theory employees had begun sharing their reactions online. Staff members took to LinkedIn to express both their sadness and their gratitude toward fellow developers, reflecting on careers built within the studio behind Hellblade: Senua’s Sacrifice and its sequel.
How we got here
The road to today began in July, when Xbox unveiled what it termed a “reset”—a major restructuring of the gaming business that included an estimated 3,200 planned job cuts across multiple studios. Ninja Theory was named among those affected. However, unlike Double Fine, which managed to spin off as an independent developer, Xbox sought to transfer ownership of Ninja Theory to another company so it could survive and continue work on Senua, a title only revealed back in June.
That proposed sale ultimately failed to materialise. A letter penned by Xbox COO Matt Booty confirmed that two separate sale-related agreements “fell through,” prompting Microsoft and Ninja Theory to begin a consultation process as the studio moved toward potential closure. Even then, however, Booty stressed that Xbox would “continue to explore other paths forward,” meaning the studio’s fate was never guaranteed.
“Sadly, after almost nine incredible years at Ninja Theory, my position is now at risk.”
Daniele Galante, principle sound designer
The human cost of restructuring
Today’s redundancy notices have brought the uncertainty to a head for many long-serving staff. Daniele Galante, a principle sound designer at the studio, shared an anecdote about the first Hellblade scene they worked on before reflecting on their departure.
“Although I am not going to pretend I am not sad about having to say goodbye to many friends, I feel ready for my next adventure, knowing that I will bring with me a huge wealth of experience gained at Ninja and throughout my previous roles,” Galante wrote.
Gameplay programmer Katrin Mair described the studio as far more than just an employer. “I’ve been trying to figure out how to write this because Ninja Theory was never just a job to me. I moved to the UK for Ninja. It was where I started my career in the games industry, and it ended up becoming such a big part of my life,” they posted.
Principle programmer Stefano Prosperi added his own reflections on the studio’s closure.
“Now, with Ninja Theory facing closure and all of us facing redundancy, it’s difficult to process the idea that this chapter may be coming to an end. I feel sadness, uncertainty and disappointment, of course. But more than anything, I feel incredibly fortunate.”
Stefano Prosperi, principle programmer
Prosperi continued: “Fortunate to have spent 13 years doing something I love. Fortunate to have worked with people at the very top of their craft. Fortunate to have been part of a studio that created things we genuinely cared about.”
A wider wave of uncertainty
These developers are just a few of the many who have lost, or are now at risk of losing, their roles as part of Xbox’s ongoing reorganisation. The mass restructuring has still not concluded, leaving staff at other Xbox-owned studios fearful of future cuts and uncertain about their own futures.
Ninja Theory had established itself in recent years as one of the UK’s most respected development houses, responsible for the acclaimed Hellblade series. Hellblade 2 earned five stars from Eurogamer back in 2024 and was described as “triumphant,” cementing the studio’s reputation for crafting emotionally resonant, technically ambitious experiences.
Looking ahead
The immediate future of Ninja Theory remains unclear. While today’s redundancy notices signal a decisive shift toward closure, Microsoft has not formally confirmed an end date, and staff continue to process what comes next. As the broader Xbox restructuring unfolds, all eyes remain on whether any last-minute solution could yet rescue the studio—or its remaining projects—before it is too late.
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