Ninja Theory Begins Layoffs After Acquisition Deals Fall Through

The Xbox studio behind Senua's Saga: Hellblade 2 is reportedly undergoing a consultation process that will lead to significant job losses.

Oct 5, 2026
Industry & Business
Ninja Theory Begins Layoffs After Acquisition Deals Fall Through

Ninja Theory, the studio known for the critically acclaimed Hellblade series, has begun a process of letting employees go after two potential deals to keep the studio afloat failed to materialize. Multiple former employees have shared on LinkedIn that their roles are at risk of redundancy or that they are actively seeking new employment.

One gameplay programmer, Katrin Mair, expressed sadness about not being able to complete ongoing projects, stating, "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." Another former employee, performance capture technician Rachel Kimber, described her time at the studio as "some of the best years of my life," highlighting the strong bonds formed with colleagues.

Ninja Theory, established in 2000, has a history that includes periods of independence, acquisition, and reformation. Its most notable work is the Hellblade series, with Senua’s Sacrifice earning widespread critical praise and its 2024 sequel, Senua’s Saga: Hellblade 2, also receiving positive reviews, though sales figures may have been impacted by its inclusion on Xbox Game Pass.

Reports suggest that the recent announcement of a new game, simply titled Senua, was an effort to attract a buyer after Xbox decided to part ways with the studio as part of a broader restructuring initiative. However, last month, Xbox confirmed that two separate deals aimed at saving Ninja Theory had fallen through, leading to the studio entering the UK's mandatory consultation process ahead of anticipated mass layoffs and a potential closure.

This situation at Ninja Theory follows similar recent developments within Xbox's portfolio, with studios like Double Fine, Undead Labs, Compulsion Games, and Arkane Lyon also undergoing separations or restructuring. Double Fine and Undead Labs have since become independent entities and have also experienced layoffs, while Arkane Lyon is currently in a consultation period.

Sources