# Xbox restructuring and Ninja Theory redundancies

> Live situation record from CLSTR: https://clstr.news/situations/xbox-corporate-restructuring-and-layoffs
> Updated: 2026-10-05T13:37:38.000Z. Sources: 39. Developments: 2.

Xbox is experiencing significant internal instability and workforce reductions. Following a prior round of 1,600 layoffs, a subsequent wave of cuts resulted in the loss of approximately 268 employees.

At the UK-based studio Ninja Theory, staff are facing layoffs after two separate deals intended to secure the company’s independence or survival collapsed. Xbox Chief Content Officer Matt Booty confirmed that these two separate agreements to either maintain the studio or transition it to an independent entity had fallen through. 

Employees at the Cambridge-based developer have begun confirming redundancies across various departments, including programming, technical art, audio, design, and performance capture. Notable departures include technical director Loong-Wei Ding, gameplay programmer Katrin Mair, and technical sound designer Alessio Mellina. 

Following Xbox’s announcement that the studio faces potential closure, the current layoffs suggest operations are winding down as part of a broader restructuring. The studio is currently undergoing a consultation process regarding a proposed closure. This development has created significant uncertainty regarding the future of the ‘Hellblade’ franchise and the development of ‘Senua’, the third installment in the series, which was recently showcased by Xbox. While Microsoft continues to explore alternative paths, the studio's future remains uncertain.

Reports from within the division, including comments from an id Software developer, describe a state of “continued chaos and declining morale.” Employees have criticized leadership for a perceived lack of strategic vision, noting that management communication often consists of “empty corporate jargon” focused on aggressive profit targets.

## Claims

- The future of the upcoming game Senua, the third in the Hellblade series, remains uncertain. (corroborated by 17 sources)
- Staff members, including technical directors and programmers, have confirmed job losses via LinkedIn. (corroborated by 15 sources)
- Two separate deals to save Ninja Theory or transition it to an independent studio have failed. (corroborated by 11 sources)
- Xbox conducted a second wave of layoffs involving 268 employees following an initial wave of 1,600. (corroborated by 4 sources)

## Timeline

### 2026-10-05: Ninja Theory faces layoffs and potential closure after failed sale deals

Ninja Theory staff have confirmed layoffs and redundancies following failed attempts to find new ownership for the studio, leaving the future of the Hellblade series and upcoming title Senua uncertain.

33 sources. https://clstr.news/cluster/ninja-theory-staff-face-layoffs-as-xbox-studio-closure-looms

### 2026-09-24: Xbox faces internal instability following new rounds of layoffs

An id Software developer reports continued chaos and low morale at Xbox following recent layoffs, citing unrealistic profit targets and a lack of clear long-term strategic direction from leadership.

6 sources. https://clstr.news/cluster/xbox-faces-internal-instability-following-new-wave-of-layoffs

---
Cite as: Xbox restructuring and Ninja Theory redundancies. CLSTR, https://clstr.news/situations/xbox-corporate-restructuring-and-layoffs