Layoffs have reportedly begun at Hellblade developer Ninja Theory as the Xbox-owned studio faces potential closure following Microsoft’s recent restructuring.

Ninja Theory has reportedly started laying off employees as uncertainty continues over the future of the Hellblade studio.

According to reports from VGC and posts from former and current employees, workers across several departments have either already lost their jobs or been informed that their positions are at risk.

The affected roles reportedly include gameplay programmers, technical directors and sound designers, although the total number of employees impacted remains unknown.

Ninja Theory Still Faces Potential Closure

Microsoft announced last month that Ninja Theory had entered a consultation process over its potential closure after attempts to find a buyer for the studio reportedly failed.

According to previous reports, two potential acquisition deals fell through, leaving Microsoft to begin consultations with employees regarding the studio’s future.

Ninja Theory had also revealed a new project involving Senua, the protagonist of the Hellblade series, with reports suggesting the announcement was partly intended to attract potential buyers.

Microsoft separately filed a new trademark for Senua shortly before announcing the restructuring.

Neither Ninja Theory nor Microsoft has publicly confirmed the number of employees affected by the latest layoffs.

For now, the studio’s ultimate fate remains uncertain as the consultation and restructuring process continues.