Report: Ninja Theory begins layoffs after being deemed surplus by Xbox

Hellblade developer Ninja Theory has commenced layoff proceedings after Xbox tried and failed to divest the storied UK studio.

Multiple impacted employees shared the news on LinkedIn. "After almost 12 years at Ninja Theory, my role here is now at risk of redundancy. I joined Ninja back in January 2015, and I feel so lucky to have been part of such a stellar team," wrote one person, who has worked at the studio for almost 12 years.

In the United Kingdom, workers are entitled to a consultation with their employer before a redundancy (layoff) is confirmed.

"Well, so ends my time at Ninja Theory,' wrote another person impacted by the cuts. "It's taken me a while to decide what to say about working here, and I still have to borrow the words of a friend and fellow Ninja: Even if I knew how it would end, I would do it again."

Similar posts shared by people working in disciplines such as performance capture and programming indicate jobs are being axed across the board.

Ninja Theory was acquired by Xbox Game Studios in 2018 for a reported $117 million (thanks, IGN) and released multiple projects, including Senua's Saga: Hellblade II and Bleeding Edge, as a first-party studio.

Almost a decade later, Ninja Theory has been deemed surplus to requirements by Microsoft, which in July confirmed it would be cutting 3,200 roles across Xbox before the end of the fiscal year in June 2027.

Initially, Microsoft said Ninja Theory had found a new owner that would provide enough funding to complete and expand Senua—a third entry in the Hellblade franchise.

Yet, less than three months later, Microsoft said two separate agreements for Ninja Theory had collapsed, leaving the studio facing the very real risk of closure.

The company has been jettisoned by Microsoft despite Senua being unveiled during the latest Xbox Games Showcase (which took place in June 2026, just before the 3,200 job cuts were announced) and heavily promoted on Microsoft's advertorial Xbox Wire blog.

According to an annual report for the year ended June 2025 (the latest available via Companies House in the UK), Ninja Theory recorded over £5 million in profit over that period. The launch of Senua's Saga: Hellblade II: Enhanced was also described as "successful."

Vertical Slice has reached out to Microsoft for comment.