Today, Sony announced that Bungie is undergoing significant layoffs affecting multiple teams at the studio.
The cuts impact most of the Destiny development team, parts of the Marathon team, and several Sony Interactive Entertainment support teams connected to Bungie.
Sony said the decision followed months of internal reviews focused on the company’s long-term direction, development priorities, staffing needs, and its role within PlayStation’s portfolio. Leadership considered several alternatives before deciding that workforce reductions were necessary.
The layoffs follow the release of Destiny 2’s final live-service content update, marking a new phase for Bungie. Sony highlighted the franchise’s decade-long impact on the industry and recognized the contributions of the team behind the series.
During the 2025 fiscal year, Sony recorded a total impairment loss of $765 million (120.1 billion yen) against Bungie. Approximately $204 million of that is tied to a sharp decline in player engagement and revenue for Destiny 2.
Sony officially completed its acquisition of the studio on July 15, 2022, with the deal being valued at approximately $3.6 billion. This is the second significant round of layoffs to hit the Destiny 2 team since then, with 17% of the workforce getting laid off back in 2024.
Despite the layoffs, Marathon remains a priority for Sony, which said it will continue to support the team as development continues and as Bungie explores new incubation projects. Sony expressed confidence in the remaining team’s creative direction but did not provide details on future titles.
Sony said its immediate focus is to assist affected employees through transition programs and to help them find opportunities within PlayStation Studios and other Sony teams where possible.
While no exact number has been released yet, the estimated number of layoffs at Bungie is around half the studio, which would come out to ~400 jobs lost. For more information on this and other video game industry news, check back to Simulation Daily for updates.
