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Ninja Theory XBOX Layoffs Begin As Hellblade Studio Faces Closure

Posts on LinkedIn confirm that Hellblade Studio, Ninja Theory, has begun layoffs after XBOX closed down the studio.

For those who may not know, Xbox announced a reorganization last month that involved layoffs across several studios. Some studios were made independent, but unfortunately, Ninja Theory received the short end of the stick, as XBOX had to close the studio when acquisition deals fell through. Now, it seems like the studio has begun letting go of its employees.

Ninja Theory Lays Off Employees Across Multiple Departments

A BlueSky post by Chris Kerr and a report by VGC have confirmed that layoffs have begun at Ninja Theory. The report reveals that employees across various departments, including gameplay programmers, technical directors, sound designers, and more, have either been let go or their jobs are at risk. Currently, there’s no official communication yet from the studio regarding the latest round of layoffs and the number of people who have been impacted.

NEW: Hellblade dev Ninja Theory has seemingly begun laying off employees after Xbox tried and failed to divest the UK studio.Last month, Microsoft said two separate agreements for the studio collapsed, meaning a closure was likely. It also, however, claimed it would "explore other paths forward."

— Chris Kerr (@kerrblimey.bsky.social) 2026-10-05T12:52:08.853Z

Reports have also revealed that XBOX already had plans to sell Ninja Theory, and the Senua trailer was revealed to bring in potential buyers for the studio. However, it was later revealed that two separate deals regarding the acquisition of Ninja Theory had fallen through, and the XBOX team had to begin consultation with employees for the closure and the way forward. What’s more, Microsoft had trademarked ‘Senua’ a week before they announced Ninja Theory’s closure.

What are your thoughts on Ninja Theory beginning layoffs? Leave your thoughts down in the comments, and join the official Insider Gaming Discord server.


For more from Insider Gaming, read about alleged leaks that seem to reveal the first gameplay trailer for ‘Marvel’s Project Comet’. Don’t forget to sign up for our weekly newsletter.

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