Ninja Theory layoffs appear to begin as studio faces possible closure

Ninja Theory employees have started publicly reporting redundancies and roles at risk as the Hellblade developer faces a proposed closure by Microsoft. Multiple staff members have posted about leaving the Cambridge studio or looking for new work after two attempts to move Ninja Theory to new ownership fell through.

Microsoft has not announced how many employees will lose their jobs, and Ninja Theory has not officially closed. Xbox said in September that it had begun consulting employees over a proposed closure while continuing to explore alternatives.

Technical sound designer Alessio Mellina, gameplay programmer Katrin Mair, technical director Loong-Wei Ding and other employees have discussed redundancies or roles at risk. The affected areas reportedly include programming, audio, technical art, character art and performance capture.

Ding said Ninja Theory is "facing closure" and that teams are being made redundant. Some employees have described their positions as at risk rather than confirming they have already left, reflecting the ongoing consultation process.

Ninja Theory's future became uncertain after Microsoft announced a major Xbox restructuring in July. The company initially said the studio had entered terms to move to new ownership with funding to continue developing Senua, its next action-adventure game.

That plan later collapsed. Xbox confirmed in September that two separate agreements involving Ninja Theory had fallen through, leading Microsoft to begin consultation with employees over a possible closure.

Ninja Theory revealed Senua during the Xbox Games Showcase in June and described it as a new action-adventure project being developed by the studio's full team. At the time, roughly 85 developers were reportedly working on the game after production on Project Mara was stopped.

Microsoft has not announced that Senua is cancelled. However, developers leaving or facing redundancy create uncertainty around how production could continue if Ninja Theory ultimately shuts down.

The studio's situation is part of Microsoft's broader reset of its gaming business. Xbox announced plans in July to eliminate thousands of positions during its 2027 financial year, followed by another round of cuts in September.

Other Xbox studios have also been reorganized, sold or placed under consultation. Ninja Theory remains among the most uncertain cases, with employees now reporting redundancies while Microsoft has yet to make a final announcement on the studio's future.