Ninja Theory begins laying off staff, according to employee posts
Ninja Theory has begun laying off staff following Xbox's failed attempts to sell the studio and a subsequent proposal to close it. The layoffs affect various roles, including programming and sound design, as the studio's future remains uncertain.
Why it matters
This reflects the ongoing trend of consolidation and workforce reductions within the gaming industry, particularly under Microsoft's Xbox division.
Xbox proposed closing the Hellblade developer in September after two separate agreements to sell it fell through
News by Vikki Blake Contributor Published on Oct. 5, 2026, 5:44 p.m. Follow Microsoft Ninja Theory has begun laying off employees.
That's according to Game Developer news editor Chris Kerr, who spotted posts from affected staff on LinkedIn .
Xbox said on September 22 that it was proposing the closure of Ninja Theory and beginning a consultation process with employees, after attempts to sell the studio failed. It said "two separate agreements for Ninja Theory fell through" while continuing to "explore other paths forward."
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