Ninja Theory: layoff process appears to have started after failed rescue deals

According to reports, two deals that were meant to save the studio fell through, after which Xbox began a consultation process with staff over a proposed closure.
Ninja Theory is the studio behind Hellblade: Senua’s Sacrifice and Senua’s Saga: Hellblade II; it was acquired by Xbox in 2018 and released Hellblade II in 2024.

What happened

Ninja Theory appears, according to multiple sources, to have entered a layoff or redundancy process. The conclusion is based on LinkedIn posts from employees saying their roles may be made redundant or that they are seeking new opportunities. The available information does not yet include an official confirmation from the studio about the scale of the cuts, so the exact number of affected positions is still unclear.

The reporting links the situation to two rescue deals that, according to sources, fell through. An Xbox Wire update explicitly says that “two separate agreements for Ninja Theory fell through” and that Xbox then began consulting with staff over a proposed closure, while still exploring other options. The same update also refers to an ongoing consultation process at Arkane, showing that the restructuring is broader than Ninja Theory alone.

The available sources do not name the two failed agreements and do not provide details on their terms. As a result, it remains unclear whether they involved a sale, an investment, a management buyout, or another structure. It is also not confirmed which teams within Ninja Theory are directly affected. The reporting does point to a Cambridge-based studio, but gives no exact headcount for those impacted.

Ninja Theory is best known as the developer of Hellblade: Senua’s Sacrifice and Senua’s Saga: Hellblade II. The studio was acquired by Xbox in 2018, and Hellblade II launched in 2024. The combination of employee posts and the Xbox Wire update makes it clear that at least a formal consultation process is underway, but the available sources still leave open whether this will ultimately lead to a full closure, a partial wind-down, or another outcome.

Timeline

2018 — Xbox acquires Ninja Theory and places the studio under Xbox Game Studios.
2024 — Senua’s Saga: Hellblade II is released.
2026-09-22 — Xbox Wire reports that two separate agreements for Ninja Theory have fallen through and that consultation with staff is beginning over a proposed closure; the same update also notes that consultation at Arkane is still ongoing.
2026-10-05 — Employee posts on LinkedIn suggest the redundancy process at Ninja Theory is already underway, although the scale has not been officially confirmed.

Background

Ninja Theory is a British studio that became internationally known through the Hellblade series. The studio came under Xbox Game Studios in 2018 following Microsoft/Xbox’s acquisition. In the years since, it remained active within the Xbox structure and released Senua’s Saga: Hellblade II in 2024. That release is notable because it shows the studio had delivered a major first-party title relatively recently before the current restructuring came into view.

The current situation fits into a broader reorganisation at Xbox, with multiple studios and teams facing changes. The available sources specifically say that two separate agreements for Ninja Theory fell through, but they do not explain the nature of those deals. That means it is not possible, based on the information provided, to say which party or parties were involved, or why the talks broke down.

There is also still very little hard confirmation about the operational impact. The sources do not give an exact employee count, a list of affected roles, or project names tied directly to the consultation. What is clear is that the studio is based in Cambridge and that the situation is formal enough to trigger a consultation process. That makes the reporting relevant to Ninja Theory’s studio history, but the outcome remains open for now.