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Ninja Theory Layoffs Begin as Xbox Moves Toward Closing the Hellblade Studio

Senua, the Celtic warrior of Ninja Theory's Hellblade series, in official art from the June reveal of the third Hellblade game — as the Cambridge studio behind the series begins layoffs and faces a proposed closure by Xbox

The Hellblade studio’s staff are saying goodbye on LinkedIn. Ninja Theory, the Cambridge studio behind Hellblade: Senua’s Sacrifice and Senua’s Saga: Hellblade 2, has begun laying off staff as Xbox moves toward closing the studio — and developers are posting farewell messages as the redundancy process reaches its grim conclusion.

The posts, first spotted by journalist Chris Kerr, come from a technical director, a gameplay programmer, sound designers and technical artists, among others. “It’s incredibly sad knowing that we won’t get to finish what we were working on,” wrote gameplay programmer Katrin Mair. “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.” Mair added that 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.”

How the Studio Got Here

Ninja Theory was supposed to survive the 3,200-job Xbox “reset” announced in July. At the time, Xbox CEO Asha Sharma said the studio had entered terms to join new ownership, with funding to finish Senua — the third Hellblade game, revealed at June’s Xbox Games Showcase with a 2027 release window on PC, Xbox and PlayStation 5. That plan collapsed in September, when Xbox chief content officer Matt Booty told staff that “two separate agreements for Ninja Theory fell through,” kicking off a consultation process on a proposed closure. Booty stressed that Xbox would “continue to explore other paths forward” for the studio — but there has been no update since.

Ninja Theory is not the only studio caught in the restructuring. Double Fine, Undead Labs and Compulsion Games have all spun off into independent studios — each undergoing waves of layoffs as part of their separation — while Arkane Lyon is also in consultation. Xbox has been bracing for hundreds more layoffs and studio consolidation since late September.

“The Best Years of My Life”

The farewell posts paint the picture better than any press release could. “Sadly, after almost nine incredible years at Ninja Theory, my position is now at risk,” wrote principal sound designer Daniele Galante. Performance capture technician Rachel Kimber, four and a half years into her time at the studio, wrote: “Ninja Theory has been some of the best years of my life, but sadly it is time to say goodbye. It has been such a pleasure and I have made friends for life.”

Principal programmer Stefano Prosperi added: “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.”

Ninja Theory has existed in some incarnation since 2000 and was acquired by Xbox in 2018. The original Hellblade earned critical acclaim in 2017, and Hellblade 2 launched in 2024 to strong reviews — though analysts suggest it may have struggled at retail while finding a reasonable audience on Xbox Game Pass.

Neither Xbox nor Ninja Theory has said how many people are affected, and the closure itself is still officially a proposal. Xbox has an all-hands town hall scheduled for today, October 6 — so more details may follow very shortly.

Sources