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

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.

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.”

“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.”

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.