Xbox cuts 268 jobs asNinja Theory faces proposed closure

Microsoft has cut 268 Xbox jobs and begun consulting Ninja Theory staff on a proposed closure after two deals to transfer the studio fell through. The cuts affect Halo Studios, other first-party teams and central Xbox functions, according to a 22 September message from Xbox chief content officer Matt Booty. Consultation means Ninja Theory has not yet closed: Microsoft says it is still exploring other options. For the people losing their jobs now, however, this is an immediate workforce reduction, not a future plan.

The Information broke news on 21 September that Xbox planned hundreds of cuts and would consolidate studios. Microsoft's published staff message the following day supplied the confirmed figure and named the teams being reorganised. It does not give a studio-by-studio breakdown of the 268 roles, identify individual job functions or say how many Ninja Theory employees might be affected if the closure proceeds. The proposed closure is a separate process; the memo does not say its staff are included in the announced cut total.

Microsoft says Activision will take charge of Rare and World's Edge and build the next Halo game with a new team. A smaller Halo Studios group will support existing games. Bethesda will oversee Obsidian, King will take on Microsoft Casual Games, and Playground Games and Turn 10 will combine into one studio for Forza and Fable. Those are confirmed changes to where people work and who directs those franchises, but the memo does not say that any announced game in these teams has been cancelled.

Ninja Theory's position has changed since July. Xbox then said the studio had entered terms to join new ownership with funding to complete and grow Senua. Its September update says two separate agreements failed and that employees will now be consulted on a proposed closure. Xbox's June showcase listed Senua for 2027 on Xbox Series X|S and PC. Microsoft has not announced a cancellation, revised release plan or buyer for the game, so the effect of the consultation on its development remains unresolved.

The Communications Workers of America, responding to the 268 cuts, said it did not expect union-represented workers to be affected. That is the union's expectation, not a workforce breakdown from Microsoft. Its statement pressed for layoff protections and recall rights, while Microsoft's memo thanked departing staff without setting out severance terms. The public documents therefore establish the job losses and the proposed studio closure, but leave practical questions for affected workers unanswered: which roles are going, what support is available, and what outcome the Ninja Theory consultation may produce.