Bungie Faces Major Layoffs, Impacting Destiny Team and Marathon Developers

Layoffs are happening at Bungie following the recent final update for Destiny 2. The studio announced a “reduction in force” on social media as part of their reorganization efforts, but they haven’t revealed how many developers will be affected. The iconic studio, known for creating Halo and other sci-fi shooters, has faced challenges since its acquisition by Sony for $3.6 billion a few years back.

“We understand this decision significantly impacts those affected, along with their families, friends, and teammates,” the studio stated. “While these changes are essential for positioning the studio for the future, it doesn’t lessen the difficulty of this moment or the effects on those impacted.”

Bungie also mentioned that future projects are “still in early incubation.” Despite ongoing support for their new extraction shooter, Marathon, which has content planned through at least the end of 2026, the studio noted that they “could not continue operating at our previous size.” Recent estimates suggest Bungie’s workforce is around 800, down from a pandemic-era peak of about 1,300 after several rounds of layoffs.

Hermen Hulst, head of PlayStation Studios, communicated with staff today about the cuts at Bungie, indicating that most of the Destiny 2 team and some Marathon developers have been laid off. Some members of Sony Interactive Entertainment have also been affected. “This is painful news, especially for talented colleagues whose roles have been eliminated,” Hulst wrote. “This decision was made only after extensive discussion and careful consideration. Over the past several months, in collaboration with Bungie leadership, we reviewed the studio’s long-term direction, development priorities, resource needs, and its role within our broader portfolio strategy. We explored multiple alternatives before concluding that a reduction was necessary to align the studio’s resources with its current priorities and long-term goals.”

His full message reads:

Dear Team,

Today I want to share a difficult update regarding Bungie.

We have made the decision to reduce Bungie’s workforce, affecting a significant number of employees, including most of the Destiny team and some Marathon team members. There are also reductions across SIE teams that support Bungie’s operations. Those impacted at Bungie and within SIE are being informed today.

This is painful news, especially for talented colleagues whose roles have been eliminated. This decision was made only after extensive discussion and careful consideration, and I want to provide some context on how we arrived here. Over the past several months, together with Bungie leadership, we reviewed the studio’s long-term direction, development priorities, resource needs, and role within our broader portfolio strategy. We explored multiple alternatives before concluding that a reduction was necessary to align the studio’s resources with its current priorities and long-term goals.

As Bungie recently shared in its Destiny 2 update, the studio has begun a new journey following the release of the game’s final live-service content update. What Bungie has accomplished with Destiny over the past decade has been truly remarkable. The franchise has left a lasting mark on players and the industry, and everyone who contributed to its success should be proud of what they helped create.

Marathon remains an important part of our portfolio, and we will continue to support the team as they build on the strong foundation established in Seasons 1 and 2, and as they work on incubation efforts for future projects. While it’s too early to discuss, we are encouraged by the creativity and opportunities that lie ahead.

Our immediate priority is supporting affected employees through this transition. We are providing transition support and, where possible, working to identify opportunities across SIE and our global network of studios.

I want to sincerely thank every affected employee for their hard work, creativity, and contributions to Bungie, SIE, and the broader gaming community.

I know today’s news is deeply difficult not only for those leaving but for their colleagues and friends that remain. Please take the time you need to process this news and support one another.

Thank you for your resilience and continued support during this difficult time.

Hermen Hulst
CEO, Studio Business Group