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Bungie Layoffs Mark Another Difficult Chapter Under Sony
Sony has confirmed a major round of layoffs at Bungie, affecting a significant number of employees across the studio and supporting teams within Sony Interactive Entertainment.
According to PlayStation Studios head Hermen Hulst, the cuts affect most of the Destiny team, some Marathon team members, and SIE staff who had been supporting the studio’s operations. Hulst said the decision was made in consultation with leadership after a strategic review of the studio’s current workload, future projects, and long-term sustainability.
It is another painful moment for Bungie following Sony’s US$3.6 billion acquisition of the studio in 2022. What was once seen as a major step in PlayStation’s live-service expansion has instead become one of Sony’s more difficult gaming investments.
Destiny 2 Winding Down Leaves Bungie in Transition
The layoffs arrive shortly after the studio brought Destiny 2’s long-running live-service chapter to a close. The game received its final major update on June 9, ending a nine-year run for one of the most influential online shooters of its era.
For years, Destiny 2 was the main commercial pillar, but Sony has acknowledged that the game’s sales and engagement fell short of expectations following the acquisition. The studio also faced earlier rounds of layoffs in 2023 and 2024, making this the latest in a series of difficult resets.
With Destiny 2 no longer serving as Bungie’s long-term centrepiece, the studio now enters a more uncertain phase. Future projects are still in early development, while Marathon remains the only major announced title in its pipeline.
Sony Says Marathon Still Has a Future
Despite the layoffs, Sony is stressing that Marathon remains important to the future of the team. Hulst said the extraction shooter will continue to be supported, even as the studio reduces its workforce and reorganises around a smaller structure.
That reassurance matters because Marathon has already faced scrutiny. The game is expected to carry much of the next phase, but it has not yet generated the kind of broad excitement that Destiny once commanded at its peak. Sony’s message is clear: the cuts are not a cancellation notice for Marathon. However, they do raise questions about how much pressure now sits on the project as Bungie’s most visible path forward.
Appreciating Departing Staff
Bungie also released its own statement thanking those affected by the layoffs, saying the team was grateful for their contributions to its games and community. Sony says it will provide transition support for impacted employees, including opportunities to explore roles elsewhere within PlayStation where possible.
That may soften the landing for some workers, but it does not change the scale of the loss for Bungie as a studio. Industry reaction has already been heavy, with developers and fans pointing to the creative talent leaving the company. For a studio whose reputation was built across Halo, Destiny, and live-service innovation, the cuts represent more than a business adjustment.
PlayStation’s Live-Service Strategy Faces More Pressure
The Bungie layoffs also renew broader questions around PlayStation’s live-service strategy. Sony once planned a major expansion into live-service games, but several projects have been cancelled, delayed, or quietly scaled back in recent years.
Bungie was supposed to be a key part of that push, both as a developer and as a source of live-service expertise for other PlayStation teams. Instead, the studio has become one of the clearest examples of how difficult that market has become.
For now, Sony says the restructuring is needed to give Bungie a sustainable future. Whether that future can still produce another major live-service success will depend heavily on Marathon and whatever comes after it.
