Ninja Theory layoffs reportedly begin, putting Senua at risk

Ninja Theory layoffs have begun at the Hellblade studio, according to reports from VGC and Game Developer on October 5, 2026, based on LinkedIn posts by developers who say their jobs have ended or are at risk. Xbox already said on September 22 that the studio faces a proposed closure. What nobody at Microsoft has said is what happens to Senua, the new game the studio revealed in June for 2027.

Key takeaways

• The closure plan is confirmed. Xbox's Matt Booty wrote on September 22 that two deals to sell Ninja Theory fell through and that Xbox would consult employees on a proposed closure.
• The layoffs are reported, not announced. VGC's report lists nine developers, from programmers and sound designers to artists and a technical director, who posted that they are leaving or at risk of redundancy. The layoffs are not confirmed by Microsoft as of Oct. 6, 2026.
• Senua's status is unknown. Revealed on June 7 for 2027, the game has had no update since the closure memo. Whether it continues is not confirmed by Microsoft as of Oct. 6, 2026.
• Game Developer says it asked Xbox for comment and had no reply by publication.

What the Ninja Theory layoffs posts confirm

The reports rest on the developers' own words, not on a company statement. VGC's report lists nine Ninja Theory staff who posted on LinkedIn, and their roles span the studio: a technical director, a gameplay programmer, a principal sound designer, a technical sound designer and another sound designer, a senior technical artist, a technical artist, a character artist and a performance capture technician.

Not every post says the same thing. Game Developer describes one technical sound designer who wrote that their role is at risk of redundancy after 12 years at the studio, while others said they had already been let go. One developer, in a post quoted by Game Rant, wrote: "It's incredibly sad knowing that we won't get to finish what we were working on."

So the posts confirm that people across the team are leaving. They don't confirm how many roles are affected in total, whether the whole studio is included, or whether the closure is final. Game Developer notes that the post it cites doesn't give the size or scope of the cuts.

What Xbox has said, and what it hasn't

The closure itself is not a rumor. In "Continuing Our Reset", published on Xbox Wire on September 22, Booty wrote: "Unfortunately, two separate agreements for Ninja Theory fell through. We will now begin consultation with employees on a proposed closure while continuing to explore other paths forward."

That memo followed a July plan that looked very different. In Xbox chief Asha Sharma's July 6 memo, Ninja Theory had "entered terms to join new ownership with funding to complete and grow Senua." We covered how that deal unraveled, along with the rest of September's cuts, in our piece on the Xbox layoffs that moved Halo to Activision.

Since September 22, Xbox has said nothing public about Ninja Theory that we could find. It hasn't confirmed the layoffs, given a number, or said whether the consultation has ended. The "at risk of redundancy" wording in some posts suggests, in our reading, that the process is still running for at least some staff.

Why Senua's 2027 release is now in doubt

Senua had its world premiere at the Xbox Games Showcase on June 7, 2026. According to Xbox Wire's interview with the studio, it "arrives in 2027" on Xbox Series X|S, Xbox on PC and cloud, included with Game Pass. Studio head Dom Matthews called it an "out-and-out action-adventure game" and said the plain title reflects "something fresh and new and different," rather than a Hellblade III.

Matthews also described the team as "those 85 people that we have now." That matters: a game built by the whole studio has nobody else to finish it if the studio closes, unless a buyer or another team takes it on. Microsoft hasn't said either way.

There's also a question about the reveal's timing. Ten days after the showcase, VGC reported, citing Game File and an anonymous source, that Microsoft had already planned to "sunset or split" with Ninja Theory when it announced Senua, hoping the game would draw investor interest. That is a claim, not a confirmed fact, and Microsoft hasn't commented on it.

What happens next

Booty's memo left one door open on a Ninja Theory closure: Xbox said it would keep exploring "other paths forward." A last-minute buyer could still change the outcome for the studio and the game. Microsoft bought Ninja Theory in 2018, for US$117 million according to the FTC filings Game Developer cites, so any sale would also decide who owns the Hellblade series.

Ninja Theory isn't the only studio cutting staff right now: read about the Supermassive Games layoffs. For more on the industry's cuts, see our video games section.

Bottom line

Xbox confirmed in September that Ninja Theory faces a proposed closure. The Ninja Theory layoffs that followed are known only from employees' posts, as reported by VGC and Game Developer, and are not confirmed by Microsoft as of Oct. 6, 2026. Senua's 2027 release is likewise not confirmed by Microsoft as of Oct. 6, 2026, in either direction. If you're waiting for the game, watch for an Xbox statement on the consultation's outcome or news of a buyer.

FAQ

Is Senua canceled?

Not officially. Xbox hasn't announced a cancellation, but it hasn't updated the 2027 release either since proposing to close Ninja Theory on September 22. One departing developer wrote that the team won't get to finish what it was working on, though the post doesn't name the game and isn't a company decision.

Is Ninja Theory closing?

Xbox has proposed closing it and started a consultation with employees, after two deals to sell the studio fell through. Booty's memo says Xbox is still exploring other options, so the closure isn't final as of October 6, 2026.