The studio reorganizes after ending support for its flagship title, impacting hundreds of employees
Category: Business
In a move that marks a dramatic shift for the iconic game developer Bungie, the company has announced a substantial reduction in its workforce, affecting a large portion of the Destiny team and some members of the newly launched Marathon team. The layoffs come just weeks after the release of the final content update for Destiny 2, a game that has defined Bungie for over a decade.
Bungie confirmed the layoffs in a statement released on June 25, 2026, shortly after the final update for Destiny 2 on June 9. This decision was made public by PlayStation CEO Hermen Hulst, who stated that the layoffs would affect "most of the Destiny team and some Marathon team members." The layoffs also extend to Sony Interactive Entertainment (SIE) teams that supported Bungie's operations. This restructuring follows a period of declining player engagement in Destiny 2 and low numbers for the new extraction shooter, Marathon.
According to Hulst, the decision to proceed with layoffs was not taken lightly. In his internal memo, he explained that the decision came after "extensive discussion and careful consideration" of the studio’s long-term direction, development priorities, and resource needs. He noted that Bungie could no longer operate at its previous scale as it transitions to new projects still in early development stages. "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," he stated.
The layoffs signal a fundamental change in Bungie's strategy, particularly concerning its flagship franchise, Destiny. The studio has acknowledged that Destiny 2 "fell short of expectations" over the past several years, leading to the decision to halt its development. There are no plans for a Destiny 3, and discussions about a potential relaunch under the name Destiny Infinity were reportedly dismissed.
Marathon, which was recently launched, remains a key focus for the studio. Hulst described it as "an important part of our portfolio" and indicated that the team would continue to work on it, alongside other projects in the incubation phase. "We are encouraged by the creativity and opportunities that lie ahead," he added, hinting at potential new directions for the studio.
Though specific numbers have not been disclosed, industry insiders suggest that the layoffs could impact approximately 50% of Bungie's workforce, which was estimated to be around 850 employees as of early 2024. This could mean that around 400 employees may lose their jobs as part of this restructuring. The layoffs also affect teams at SIE that have provided support to Bungie, highlighting the broader implications of this decision across the gaming industry.
Bungie has expressed deep regret over the layoffs, stating, "We know this decision has a profounf impact on the people affected, their families, friends, and teammates." The studio has committed to providing transition support to those impacted by the layoffs. This includes efforts to identify new opportunities within SIE and its global network of studios, as well as emotional support for those who remain.
This restructuring at Bungie reflects a larger trend within the gaming industry, where many studios are reevaluating their strategies in response to changing market dynamics. The acquisition of Bungie by Sony for $3.6 billion in 2022 was intended to bolster Sony's live-service game portfolio. Still, recent reports indicate that this strategy may be shifting, especially following a $565 million impairment loss attributed to Bungie's underperformance with Destiny 2 and Marathon.
As the gaming world evolves, the focus is increasingly on single-player experiences, as seen with Sony's recent emphasis on titles like Insomniac’s Wolverine. The fate of Bungie's future projects remains uncertain, but the studio's ability to pivot and innovate will be closely watched by both fans and industry analysts.
In the aftermath of these layoffs, the gaming community has rallied around Bungie, especially in light of Destiny 2's final update. Many players have returned to the game, with reports of consistent player counts around 100,000, driven by nostalgia and the desire to experience the game's concluding chapter. This resurgence, albeit temporary, showcases the lasting impact of Bungie's work on its fanbase.
As Bungie embarks on this new chapter, the gaming community and industry observers will follow closely closely to see how the studio navigates its future without a substantial portion of the team that helped shape its most successful titles.
Today’s news marks a painful moment for Bungie, a studio that has left an indelible mark on the gaming industry. As they look to the future, the hope is that the creativity and talent that defined Bungie will find new avenues for expression in the projects to come.