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Ninja Theory begins layoffs after rescue deals fall through

Employees at the Hellblade studio say their roles are at risk after two deals to save the company collapsed, according to Kotaku.

Ninja Theory has started letting employees go after two deals that would have saved the studio fell through, according to Kotaku.

Multiple now-former employees posted on LinkedIn saying their roles were at risk of redundancy or that they were looking for new work. Gameplay programmer Katrin Mair said the team would not get to finish what it was working on, while performance capture technician Rachel Kimber said goodbye after four and a half years at the studio.

The studio has existed in some form since 2000 and passed between independence and outside ownership before Xbox acquired it in 2018. Its breakout title, Hellblade: Senua's Sacrifice, was a critical hit, and Senua's Saga: Hellblade 2 followed in 2024 to praise, though analyst comments suggest it may have struggled in sales.

A wider Xbox restructuring

Four months ago, at Xbox's summer showcase, Ninja Theory announced a new game titled Senua, reportedly to attract a buyer. Xbox later decided to part ways with the studio as part of a restructuring expected to cut about 3,200 jobs over a year.

Last month, Xbox announced the two deals to save Ninja Theory had fallen through and that the studio would enter the UK consultation process. Double Fine, Undead Labs, Compulsion Games and Arkane Lyon were also named in separation processes. Double Fine, Undead Labs and Compulsion Games have since spun off as fully independent studios, with Double Fine and Undead Labs also undergoing layoffs, while Arkane Lyon remains in consultation.

Quick answers

What happened to Ninja Theory?

The studio has begun letting employees go after two deals to save it fell through, according to Kotaku. Former staff have posted on LinkedIn about redundancy risk.

Which games is Ninja Theory known for?

Hellblade: Senua's Sacrifice and Senua's Saga: Hellblade 2, which launched in 2024. A new game titled Senua was announced four months ago at Xbox's summer showcase.

Why is Xbox cutting jobs?

Xbox is restructuring and expects to cut about 3,200 jobs over a year. Double Fine, Undead Labs, Compulsion Games and Arkane Lyon were also announced as undergoing separation processes.

Sources