Sony confirms it’s laying off ‘most of the Destiny team’ and ‘some’ Marathon devs

Sony has announced that it will be making further layoffs at Bungie.

The news was broken by the Destiny 2 studio in a statement on X, saying: “With great sadness, we are announcing a reduction in force as we reorganize Bungie.”

It added: “As the leaders of Bungie, past and present, we recognize Destiny 2 fell short of expectations these past several years. Following our final content update to Destiny 2, and with our future projects still in early incubation, we unfortunately could not continue operating at our previous size.

“We know this decision has a profound impact on the people affected, their families, friends, and teammates. While these changes are necessary to best position the studio now and for the future, that does not lessen the difficulty of this moment or the impact it has on those affected.

“Later, we will share more about that future with you all but today is not that day.

“Today, we wish to extend our gratitude and compassion to every member of the Bungie team who has been impacted and to those who remain. We hope you will do the same.”

Sony Interactive Entertainment CEO Hermen Hulst informed SIE employees of the news today, sending an internal email which was later published on the Sony website.

“Today I want to share a difficult update regarding Bungie,” Hulst’s email reads. “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 Season 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 those 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.”

Destiny 2’s final major content update, Monument of Triumph, was released on June 9, bringing an end to the game’s nine-year run of content.

A Bloomberg report last month claimed that Bungie was planning a “significant” number of layoffs once the game’s content ended, and would be focusing on the extraction shooter Marathon in the near term, with some Destiny 2 developers already transferred to the game.

The publication claimed that Bungie didn’t have a new project lined up for Destiny 2’s development team following its final content update, and didn’t plan to immediately start development on Destiny 3.

Sony Interactive Entertainment recently reported a $765 million impairment loss related to Bungie assets, following the release of its extraction shooter Marathon. Sony has not said how the game has performed since its release earlier this year.

Bungie has seen numerous rounds of layoffs since it was acquired by Sony in 2022. At the time, the PlayStation company said Bungie would “continue to operate independently, maintaining the ability to self-publish and reach players wherever they choose to play”.

A report at the time, however, stated that the company’s board structure was contingent on Bungie hitting certain financial goals, and that if it failed to do so Sony could choose to dissolve the existing board and assume full control of the company.

In October 2023, Bungie’s staff were reportedly warned that revenue was running at around 45% below projections for the year, which was said to have been attributed to poor player retention for Destiny 2.

Struggling to meet its targets and with the threat of a potential Sony takeover looming, Bungie’s leadership reportedly embarked on a wide-ranging cost-cutting plan that saw 100 of the studio’s 1,200 employees laid off in October 2023.

Further layoffs followed in July 2024, when Bungie announced it was laying off 220 staff – roughly 17% of the studio – citing “rising costs of development and industry shifts” as the reason.