EVERYTHING
According to Variety, Bungie is undergoing a major restructuring that will result in a substantial number of job losses across its development teams. The studio issued an official statement on X explaining that the reduction in force is necessary as they reorganize their internal operations following the conclusion of the Destiny 2 content cycle.
Impact on core development teams
While Bungie did not disclose the exact number of employees being let go, Sony Interactive Entertainment’s Studio Business Group CEO Hermen Hulst provided specific details regarding the scope. He confirmed that the layoffs will include a significant number of staff members, specifically targeting most of the team responsible for Destiny 2 and several individuals from the Marathon project.
The studio acknowledged that the flagship title failed to meet expectations over recent years. The decision to downsize comes as the company pivots toward new initiatives that are still in their early stages of development. Key points regarding the transition include:
Industry context and future outlook
The restructuring highlights the ongoing pressure on live-service titles to maintain high engagement levels over long periods. By reducing the workforce now, Bungie aims to align its overhead with its current project pipeline while attempting to stabilize its position under Sony's ownership. The studio remains focused on incubating new ideas despite the immediate contraction of its primary development departments.
This move signals a shift in how Sony manages its third-party acquisitions, prioritizing lean operations for studios that have reached the end of a major content lifecycle. As Bungie moves into this reorganization phase, the industry will be watching to see which new projects emerge from the current incubation period.