Bungie cuts staff after Destiny 2’s final content update
Sony’s Hermen Hulst said the layoffs affect most of the Destiny team and some Marathon staff, with Bungie citing weaker Destiny 2 performance.
By James Whitfield · Staff Writer
2 min read
Bungie is laying off employees as it reorganizes after delivering the final content update for Destiny 2. The cuts matter because Sony’s live-service strategy has already faced repeated setbacks, and the reductions reach into Bungie’s best-known franchise team.
Bungie announced the reduction in a statement on X, saying it was restructuring the studio, according to The Verge. The company did not give a number of affected workers.
Hermen Hulst, CEO of Sony Interactive Entertainment’s Studio Business Group, said in a separate statement that the layoffs would affect “a significant number of employees,” according to The Verge. Hulst said the cuts include most of the Destiny team and some employees working on Marathon.
Bungie said Destiny 2 had not performed as hoped in recent years. In its statement, the studio said it recognized the game had “fell short of expectations” and said the company could not keep operating at its former size after the game’s final content update while future projects remain in early development.
According to The Verge, Destiny 2 received its last update on June 9. The end of that content schedule leaves Bungie with Marathon and early-stage projects as it tries to reset its staffing and priorities.
Another cut at a Sony-owned studio
Hulst said Sony and Bungie reviewed other options before deciding layoffs were needed, according to The Verge. He said the move was meant to bring Bungie’s resources in line with its current priorities and longer-term plans.
The latest reduction follows earlier staff cuts at Bungie in 2023 and 2024, according to The Verge. Sony acquired Bungie as part of a broader effort to expand in live-service games, a field built around long-running titles that receive continuing updates and sell ongoing content.
That strategy has faced pressure across the industry. The Verge cited a broader pullback after companies invested heavily in live-service games, pointing to failures such as Concord and Highguard and weaker periods for major releases including Fortnite.
Bungie launched Marathon, an extraction shooter, in March, according to The Verge. The game has struggled during the wider live-service downturn, The Verge reported.
The layoffs leave Bungie reshaping itself after the close of a major Destiny 2 chapter. The company’s public statements point to a smaller studio focused on Marathon and projects that have not yet moved beyond early incubation.
This story draws on original reporting from The Verge.