Bungie Confirms Layoffs, “Most” Of Destiny Team Let Go

One month after rumors surfaced about a "significant" number of layoffs, Bungie has officially confirmed the news as part of a broader reorganization. The move, which has sent shockwaves through the gaming community, marks a major shift for the studio, particularly for those involved in the Destiny franchise.

In a June 25 X post, Bungie announced a "reduction in force" that will have a "profound impact on the people affected, their families, friends, and teammates." PlayStation Studios head Hermen Hulst also addressed the situation in a detailed blog post, stating that "most of the Destiny team" has been let go, along with "some" members of the Marathon team and the Sony Interactive Entertainment teams that supported Bungie's operations.

"As the leaders of Bungie, past and present, we recognize Destiny 2 fell short of expectations these past several years," the studio wrote. "Following our final content update to Destiny 2, and with our future projects still in early incubation, we unfortunately could not continue operating at our previous size."

Hulst acknowledged the difficulty of the decision, especially after extensive discussions and careful consideration by PlayStation. He emphasized that the reduction in force was necessary to align the studio's resources with its current priorities and long-term goals.

The Future of Bungie and PlayStation's Portfolio

Hulst noted that Marathon, Bungie’s latest project, remains a key part of PlayStation's portfolio. The company will continue to support Bungie as it develops new content for the game and works on its "future projects," which are currently too early to discuss.

The studio also mentioned it will share more about its future plans, but not today. In the meantime, Bungie extended its gratitude and compassion to all impacted employees and those who remain with the company.

A Major Shift for Destiny and Sony

While the news wasn't entirely unexpected, the reality of seeing "most" of the Destiny team let go is still stunning. The team was responsible for creating one of the most influential games in modern gaming history. This move also highlights ongoing challenges at Sony, which acquired Bungie in 2022 for $3.6 billion.

The acquisition was part of Sony's push toward live-service games — an area where Bungie had considerable expertise. However, the publisher’s focus on live-service games seems to have slowed, with multiple projects canceled and several studios shut down. This situation raises questions about the future of Bungie’s projects and its role within Sony’s broader strategy.

As the gaming world watches closely, one thing is clear: the landscape of game development is constantly evolving, and even the most established studios are not immune to the pressures of change.