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Sony Announces Layoffs at Bungie With Cuts Impacting Most of the Destiny Team

Sony Announces Layoffs at Bungie With Cuts Impacting Most of the Destiny Team

Most of the Destiny team and some Marathon team members have been laid off, Sony said.

Written by Manas Mitul | Updated: 26 June 2026 12:45 IST

Sony Announces Layoffs at Bungie With Cuts Impacting Most of the Destiny Team

Photo Credit: Bungie

Destiny 2's final update, Monument of Triumph, released earlier this month

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Highlights

Bungie was acquired by Sony in 2022 for $3.6 billion
Destiny 2 will get no further content updates
Bungie's future projects are still in early incubation

Sony has announced layoffs at Bungie, a move that has been expected for weeks since the studio released the final content update for Destiny 2. The cuts will impact most of the Destiny team and some Marathon team members at the studio, Sony said, but did not specify the number of affected employees. Bungie said the studio had to reduce in size with its future projects still in an early incubation period.

Bungie's development teams have been split between supporting Destiny 2 and Marathon, which launched in March to critical acclaim but has since failed to attract a large player base. In May, the studio announced it would end development on Destiny 2 after nearly a decade of updates. The game's final content update, Monument of Triumph, released earlier this month and saw Destiny 2 fans swarming to the game to bid it farewell.

However, that wasn't enough to move the needle internally. In its announcement, Bungie said Destiny 2 fell short of expectations in recent years. With Destiny 2 updates wrapped up and its future projects still in early incubation, the studio said it could not continue operating at its previous size.

Bungie CEO Pete Parsons Steps Down Amidst Restructuring

pic.twitter.com/ceJTcKMs23
— Bungie (@Bungie) June 25, 2026

Most of Destiny Team Affected

In an internal email to SIE staff, PlayStation studios boss Hermen Hulst said the layoffs would affect a “significant number of employees” at Bungie, including most of the Destiny team and some Marathon team members. Cuts will also impact an unspecified number of employees across SIE teams that support Bungie's operations.

Hulst said the news was “difficult” and “painful” and the decision to cut staff was made after “extensive discussion and careful consideration.”

Bungie Says It Has Plans for Marathon Story for 'Next Few Years'

“Over the past several months, together with Bungie leadership, we reviewed the studio's long-term direction, development priorities, resource needs, and role within our broader portfolio strategy,” Hulst said. “We explored multiple alternatives before concluding that a reduction was necessary to align the studio's resources with its current priorities and long-term goals.

“As Bungie recently shared in its Destiny 2 update, the studio has begun a new journey following the release of the game's final live-service content update. What Bungie has accomplished with Destiny over the past decade has been truly remarkable. The franchise has left a lasting mark on players and the industry, and everyone who contributed to its success should be proud of what they helped create.

“Marathon remains an important part of our portfolio, and we will continue to support the team as they build on the strong foundation established in Season 1 and 2, and as they work on incubation efforts for future projects. While it's too early to discuss, we are encouraged by the creativity and opportunities that lie ahead.”

Marathon Review: Bungie's Slick FPS Is One of the Best Shooters in Years

Bungie said the restructuring was necessary to best position the studio for the future. The studio said it would share more about that future at a later time.

Recent years have been turbulent for Bungie, which was acquired by Sony in 2022 for $3.6 billion. Destiny 2 updates have failed to re-energise the player base, and the studio has been hit with several rounds of layoffs.

Marathon, too, has had a rocky start. The extraction shooter was delayed last year after a less-than-enthusiastic response to its closed alpha. The game launched in March this year, but despite praise from a core group of loyal players, it has been unable to amass a player base comparable to Destiny 2.

Last year, Pete Parsons stepped down as Bungie CEO after two decades at the company. The Destiny maker has not yet announced its future projects, even as it continues to support Marathon through seasonal updates.

Destiny 2

REVIEW
KEY SPECS
NEWS

Good
Fantastic gunplay
Amazing music
Slick visuals

Bad
Bugs
Pay-to-win microtransactions

Read detailed Bungie Destiny 2 review

Genre MMO

Platform PlayStation 4 (PS4), PlayStation 5 (PS5), Stadia, Xbox One, Xbox Series S/X, PC: Windows

Modes Multiplayer

Series Destiny

PEGI Rating 12+

More Bungie Games

Marathon

REVIEW
KEY SPECS
NEWS

Good
Bold, striking art style and visuals
Robust, responsive FPS gameplay
Distinct Runner shells
Excellent loot game
Immersive story and lore
Challenging Enemy AI

Bad
Game readability issues
Complex menus and UI
Lack of diverse modes

Read detailed Bungie Marathon review

Genre Shooter

Platform PlayStation 5 (PS5), Xbox Series S/X, PC: Windows

Modes Single-player

More Bungie Games

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Further reading: Bungie, Sony, PlayStation, Destiny 2, Marathon

Manas Mitul

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In his time as a journalist, Manas Mitul has written on a wide spectrum of beats including politics, culture and sports. He enjoys reading, walking around in museums and rewatching films. Talk to Manas about football and tennis, but maybe don’t bring up his video game backlog. More