Bungie Considers Subleasing Portions of Its 210,984 Sq. Ft. Studio Following Recent Layoffs Exceeding 600 Employees

Bungie operates out of a sprawling office in the pricey Bellevue, Washington real estate market. The studio significantly expanded its space in 2021, a decision that seemed justified by the success of Destiny 2 during the pandemic. However, in hindsight, this move now raises questions about potential overreach and management missteps. Following a series of layoffs and a downturn in its game performance, Bungie is now looking to sublease large portions of its office that it no longer requires.

“Bungie is exploring options to sublease its campus in Bellevue, Washington,” a spokesperson shared. “The studio transitioned to a digital-first model several years ago, and this move reflects the team’s evolving workplace needs and the effectiveness of its remote collaboration. Bungie will continue to maintain a physical office presence in Bellevue.”

The descriptions of Bungie’s headquarters paint a picture of a modern and vibrant workspace, featuring a dedicated gym, a climbing wall, and areas for playtesting. Reports indicate that the sublease brochure highlights additional amenities, including a motion capture studio, a streaming studio, audio and Foley rooms, capture facilities, and editing suites.

Initially, Bungie announced this expansion as part of a strategy to capitalize on Destiny 2’s success and its ambitious content pipeline, while also branching out into new projects beyond its flagship title. The press release at the time emphasized the creation of state-of-the-art facilities to support the growth of its talented workforce, with a focus on long-term development for Destiny 2, storytelling within the Destiny Universe, and the creation of new worlds in upcoming IPs.

After being acquired for $3.6 billion, Bungie’s ambitious plans have not materialized as expected. Destiny has not evolved into a trans-media powerhouse, and most of the non-Destiny projects in development were scrapped, with one project, Gummy Bears, being absorbed into PlayStation. Additionally, the decision was made to officially sunset Destiny 2. Currently, the only project on the horizon is Marathon, an extraction shooter that faces uncertain prospects.

At its peak during the pandemic, Bungie employed over 1,500 people. However, multiple rounds of layoffs in 2023, 2024, and 2026 have reduced that number by at least 600, not including regular attrition and roles reassigned within the PlayStation ecosystem. The studio now appears to be operating with around 500 employees.

Bungie has embraced a “digital first” approach, allowing for remote work, which is a savvy strategy for attracting top talent while sidestepping the high costs associated with hiring exclusively in the Seattle area. However, this shift raises questions about whether such a strategy should have been considered before committing to a significant expansion of its physical headquarters.