Sony
Sony’s $3.6 billion Bungie acquisition faced challenges, as Destiny 2’s final update marks the end of an era. Spencer Platt/ Getty Images

Sony has announced widespread job cuts at Bungie following the end of Destiny 2's live service and the studio's decision to reorganise around Marathon.

The layoffs affect a significant number of employees, including most of the Destiny development team, according to an internal email from Hermen Hulst, Chief Executive of Studio Business Group at Sony Interactive Entertainment.

The move comes after Bungie acknowledged that Destiny 2 had failed to meet expectations in recent years.

Bungie Announces Major Restructuring

In a statement released on Wednesday, Bungie said it had made the difficult decision to reduce its workforce. The studio said Destiny 2 had 'fallen short of expectations these past several years.' Following the game's final content update, Bungie said it could no longer continue operating at its previous size while future projects remain in early incubation.

The company said the decision would have a significant impact on employees, their families and colleagues. It added that more information about Bungie's future would be shared at a later date.

Sony Confirms Most of the Destiny Team Has Been Cut

In an internal email sent to Sony Interactive Entertainment employees, Hermen Hulst confirmed that most of the Destiny team had been affected by the restructuring. He also said some members of the Marathon team and employees within Sony Interactive Entertainment who supported Bungie's operations had been laid off.

Hulst said Sony and Bungie leadership had reviewed the studio's long-term direction, development priorities, and resource needs over several months. He said multiple alternatives had been considered before deciding that workforce reductions were necessary to align Bungie's resources with its current priorities and long-term goals.

Nearly 300 Employees Reportedly Affected

According to Forbes senior contributor Paul Tassi, at least 292 employees have been laid off across Bungie. The report also said studio head Justin Truman has stepped down. Former Vice President of Operations Poria Torken will succeed him.

Paul Tassi also reported that contractors assigned to test and deliver the final Destiny 2 hotfix had been affected by the layoffs. Bungie has not publicly commented on the status of that update.

Marathon Becomes Bungie's Primary Active Project

Bungie said its future projects remain in early incubation. Sony confirmed that Marathon remains an important part of PlayStation Studios' portfolio and said it would continue supporting the development team while work on future projects continues. No additional fully announced Bungie titles are currently in active development.

Sony's Acquisition Faces Continued Challenges

Sony acquired Bungie in 2022 in a deal valued at $3.6 billion. Since then, the company has recorded impairment losses related to the acquisition as Bungie has faced commercial challenges.

Destiny 2 became one of the gaming industry's most successful live service titles during the past decade. However, Bungie confirmed that the game's final content update has now been released.

Support for Affected Employees

Sony said its immediate priority is supporting employees affected by the layoffs. According to Hulst's email, the company is providing transition support and will seek opportunities for affected staff across Sony Interactive Entertainment's global network of studios where possible. Bungie said it remains grateful to every employee affected by the restructuring and thanked both former and current staff for their contributions to the studio.

The restructuring marks a significant change for Bungie as the studio begins its next phase under Sony's ownership, with Marathon now serving as its primary announced active project.

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