Two Rescue Deals Collapsed. Now Ninja Theory Has Started Letting Staff Go

Staff at Cambridge-based developer Ninja Theory have begun announcing redundancies and departures following the collapse of two prospective agreements intended to separate the studio from Microsoft's Xbox division.

The departures became public on October 5, 2026, after multiple developers posted redundancy notices on LinkedIn. The posts, first highlighted by journalist Chris Kerr and subsequently reported by outlets including Kotaku and Video Games Chronicle, confirm that formal redundancy consultations are translating into departures across several departments.

Departures Across Audio, Art, and Engineering

Those affected include staff with extensive tenure at the studio. Technical sound designer Alessio Mellina confirmed his role is at risk of redundancy after nearly 12 years with Ninja Theory. Other departures or roles placed at risk include performance capture technicians Rachel Kimber and Xoe Suvari, technical director Loong-Wei Ding, senior technical artist Matt Le-Fevre, technical artist Justin Pedersen, principal sound designer Daniele Galante, character artist Pietro Berto, and sound designer Matteo Tummino.

Gameplay programmer Katrin Mair, who spent four years at the studio, reflected on the halt to their current work: "It's incredibly sad knowing that we won't get to finish what we were working on. 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."

How the Buyout Talks Fell Apart

Microsoft acquired Ninja Theory in 2018 following the release of Hellblade: Senua's Sacrifice in 2017. The studio followed with Senua's Saga: Hellblade 2 in May 2024. In July 2026, Xbox announced a corporate restructure and plans to transfer Ninja Theory to new ownership.

Those efforts collapsed in late September 2026. Xbox Chief Content Officer Matt Booty confirmed that negotiations with two external parties had ended without a deal. "Unfortunately, two separate agreements for Ninja Theory fell through," Booty said. "We will now begin consultation with employees on a proposed closure while continuing to explore other paths forward."

Industry reports allege potential buyers walked away because Microsoft refused to sell the intellectual property rights to the Hellblade franchise. An upcoming project titled Senua was unveiled during the Xbox Games Showcase in June 2026 with a targeted 2027 release window, reportedly shown in part to attract prospective acquirers.

The Broader Xbox Reductions

The redundancies at Ninja Theory coincide with broader cuts across Microsoft's gaming division. Microsoft confirmed 268 layoffs during the September wave that initiated the proposed closure consultations, as part of planned cuts targeting approximately 3,200 jobs across Xbox.

Microsoft has not confirmed whether Senua will be canceled or reassigned to another studio, nor whether Ninja Theory will close permanently once employee consultations conclude.