Seattle: Sony-owned game developer Bungie has announced another round of layoffs, affecting employees working on the popular Destiny franchise, the recently launched Marathon, and several support teams. The latest workforce reduction comes as the studio restructures its operations to align with its long-term business strategy and future development plans.

While Bungie has not disclosed the exact number of employees affected, the latest cuts mark another chapter in the studio’s ongoing restructuring following Sony’s acquisition of the company in 2022. The decision impacts developers across multiple projects as well as some Sony Interactive Entertainment (SIE) employees assigned to support Bungie’s day-to-day operations.

Sony cites long-term strategy behind layoffs

The layoffs were confirmed by Sony Interactive Entertainment’s Studio Business Group CEO, Hermen Hulst, who addressed employees through an internal communication and later outlined the decision in a public blog post.

Hulst described the move as difficult but necessary to ensure Bungie remains sustainable in the long term.

“This is painful news, especially for talented colleagues whose roles have been eliminated. This decision was made only after extensive discussion and careful consideration,” Hulst said.

According to Sony, multiple alternatives were explored before deciding on workforce reductions. However, the company concluded that downsizing was the most practical option to better align Bungie’s resources with its evolving business priorities.

Sony added that the restructuring is aimed at strengthening Bungie’s future development pipeline while maintaining focus on key projects.

Another round of job cuts since Sony acquisition

The latest layoffs continue a pattern of workforce reductions since Sony acquired Bungie for approximately $3.6 billion in 2022.

The studio had already announced significant layoffs in both 2023 and 2024 as it adjusted to changing market conditions and the challenges facing live-service games.

Although Bungie has not revealed how many employees have been affected this time, the company employed around 850 people in 2024. Industry observers believe the latest cuts impact multiple departments across development, operations and support functions.

The restructuring also affects a number of Sony Interactive Entertainment employees who were integrated into Bungie’s operations following the acquisition.

Destiny 2 falls short of expectations

One of the major factors behind the restructuring appears to be the declining performance of Bungie’s flagship title, Destiny 2.

Earlier this month, Bungie released what it described as the game’s final content update, bringing an end to its latest development cycle.

In a statement posted on X, the company acknowledged that the title had not achieved its expected performance in recent years.

“We recognise Destiny 2 fell short of expectations these past several years,” Bungie said.

The studio explained that with the conclusion of major content updates and future projects still in their early stages, maintaining its previous workforce size was no longer financially sustainable.

Despite remaining one of the most recognisable live-service games in the industry, Destiny 2 has faced increasing competition and changing player expectations in recent years.

Marathon yet to gain expected momentum

Bungie’s latest major release, Marathon, has also struggled to establish itself in the highly competitive live-service gaming market.

The extraction shooter entered a crowded segment dominated by established multiplayer titles and has reportedly not achieved the player engagement Sony had anticipated.

Although the game remains an important part of PlayStation’s future strategy, its commercial performance has fallen short of initial expectations.

Hermen Hulst reiterated Sony’s commitment to the title, stating that Marathon continues to play an important role in the company’s gaming portfolio despite its early challenges.

Sony is expected to continue supporting the game while Bungie evaluates future updates and improvements.

Support for affected employees

Sony said assisting impacted employees remains its immediate priority following the layoffs.

The company has committed to providing transition support, career assistance and, where possible, opportunities for affected staff to apply for positions across Sony Interactive Entertainment and its global network of PlayStation Studios.

Such internal transfers have become a common part of workforce restructuring across the gaming industry as publishers attempt to retain experienced talent while reallocating resources.

However, Bungie has not announced how many employees may ultimately be redeployed within Sony.

Gaming industry continues to face restructuring

The latest layoffs reflect a broader trend affecting the global video game industry over the past two years.

Several major publishers and developers have reduced staff as rising development costs, slower growth in live-service games and changing consumer spending patterns have forced companies to reassess long-term investments.

Studios across North America, Europe and Asia have announced restructuring plans aimed at improving efficiency while focusing on fewer, higher-priority projects.

For Bungie, the latest workforce reduction signals another step in its transition under Sony ownership as it balances maintaining established franchises with developing new intellectual property.

Conclusion

Bungie’s latest layoffs underscore the ongoing challenges facing the gaming industry, particularly for studios focused on live-service titles. While Sony maintains that the restructuring is necessary to support Bungie’s long-term future, the decision highlights the difficult balance between business sustainability and preserving development talent. As Destiny 2 enters a new phase and Marathon seeks to expand its player base, Bungie’s future strategy will remain closely watched by the gaming community.