Report: Ninja Theory lays off workers after failing to spin off from Xbox

Ninja Theory, known for the Hellblade series and the upcoming Senua, is cutting jobs after Microsoft’s Xbox division could not finalize a divestiture plan. The studio was acquired by Microsoft in 2018 for $117 million as part of Xbox Game Studios. Efforts to separate Ninja Theory from Xbox, either through sale or independent operation, have reportedly stalled, leading to the current workforce reductions. A technical sound designer at Ninja Theory announced on LinkedIn that their role is at risk of redundancy after 12 years with the studio.

The layoffs follow a broader “reset” announced by Xbox in July, which included 3,200 job cuts across the division. Xbox specifically mentioned plans to spin off Ninja Theory and Undead Labs, with Undead Labs successfully completing its divestiture. However, attempts to find a buyer for Ninja Theory have reportedly failed, leaving the studio’s future uncertain. Former employees, including a performance capture technician and a gameplay programmer, have also shared similar updates on LinkedIn regarding their employment status.

Xbox’s Chief Content Officer Matt Booty acknowledged in an October Xbox Wire post that efforts to sell Ninja Theory had not succeeded. The studio’s fate was reportedly discussed internally before the announcement of its new title Senua at Summer Game Fest in June. Industry reporting suggested Microsoft unveiled Senua to attract potential buyers, though no sale materialized. Xbox has not responded to requests for comment or confirmation regarding the layoffs.

The layoffs mark a significant shift for Ninja Theory, which was acquired by Microsoft six years ago. The studio’s recent projects, including Hellblade and the upcoming Senua, have been central to its identity. The failure to divest the studio reflects broader challenges within Xbox’s restructuring efforts, which have included studio closures and workforce reductions across the division.