Bungie Lays Off Majority of Destiny 2 Team After Final Update

Bungie has initiated significant workforce reductions impacting the majority of its Destiny 2 team as the studio moves past the end of the popular live-service game, Kotaku is reporting.

The game studio confirmed that mass layoffs are currently underway at the studio earlier today. This news comes just weeks after the game received its final content update, signaling a painful transition for the legendary developer.

According to internal reports and messages shared with staff, the cuts are hitting the majority of the team that worked on Destiny 2. Furthermore, some developers working on the studio’s upcoming extraction shooter, Marathon, are also being affected. These reductions are not limited to Bungie alone as teams within Sony Interactive Entertainment that support Bungie’s operations are also seeing job losses.

In a letter sent to staff, Hermen Hulst, the head of PlayStation Studios, addressed the situation directly. Hulst explained that the decision followed extensive discussions regarding the long-term direction of the studio, its development priorities, and how it fits into the broader portfolio strategy of Sony.

Bungie’s current situation is a stark contrast to its recent history. Following a pandemic-era boom, the studio’s headcount once reached approximately 1,300 employees. However, following previous rounds of layoffs, recent estimates placed the studio’s size at around 800. This latest round of cuts reflects a studio struggling to find its footing after being acquired by Sony for $3.6 billion several years ago.

Despite the heavy focus on the cuts, Sony and Bungie have emphasized that Marathon remains an important part of their future strategy. The studio plans to continue supporting the extraction shooter, with content already scheduled through the end of 2026.

For those impacted, the studio is providing transition support and attempting to identify opportunities across the wider Sony Interactive Entertainment network.