Bungie has officially announced a round of layoffs following the lacklustre performance of its upcoming title 'Marathon' and the conclusion of updates for 'Destiny 2'.

On the 25th, Bungie and Sony Interactive Entertainment (SIE) confirmed via their official websites and social media channels that they are restructuring the studio. The cuts affect a significant portion of the 'Destiny' development team, some staff working on 'Marathon', and even personnel from SIE who were integrated into Bungie's operations.

Bungie's management admitted that 'Destiny 2 has not met expectations in recent years.' They stated, 'With the final content update concluded and future projects still in early conceptual stages, we unfortunately could no longer sustain our previous scale of operations.' They added, 'While these changes are deemed necessary to position the studio for the present and future, it does nothing to soften the immediate blow or the impact on those affected.'

Hermen Hulst, CEO of SIE, explained, 'We explored various alternatives before reaching the conclusion that staff reductions were necessary to align the studio's resources with current priorities and long-term goals.' He further noted, 'Marathon remains a vital part of our portfolio, and we will continue to support the team as they build upon the strong foundation established in Seasons 1 and 2, while focusing on early development for future projects.'

Founded in 1991, the American developer Bungie is perhaps best known for the Marathon and Halo series. They launched the first title in the Destiny franchise in 2014, followed by Destiny 2 in 2017, and were eventually acquired by SIE in 2022. Nine years after its release, Destiny 2 ceased development on June 9th with its final update, 'Into the Light', coinciding with the release of 'The Collection', which bundles all expansions and content packs.

Bungie’s workforce has been shrinking steadily. Following an initial restructuring that saw approximately 100 employees let go in October 2023, another 220 staff members were cut in mid-2024. Reports of mass layoffs first surfaced in May, which were officially formalised and detailed on the 25th.