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Bungie Announces Layoffs Following Final Destiny 2 Update

Just two weeks after rolling out the final content update for Destiny 2, Bungie has announced a significant reduction in its workforce. In a statement posted to Bluesky, the studio cited a need to reorganize as it transitions away from its long-running MMO.

"As the leaders of Bungie, past and present, we recognize Destiny 2 fell short of expectations these past several years," the statement read. "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."

Impact on Staff and Studio Direction

PlayStation CEO Herman Hulst addressed the situation in an internal email published on the Sony website. Hulst confirmed that the layoffs affect a "significant number of employees," specifically noting that the majority of the Destiny team and a portion of the Marathon team were impacted. Reductions also extended to Sony Interactive Entertainment (SIE) teams that support Bungie's operations.

Hulst stated that the decision followed a review of the studio's long-term direction and development priorities. "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," he wrote.

The move comes after a turbulent period for the studio. Earlier this year, Sony reported a $765 million impairment loss on Bungie for the last financial year. While Destiny 2’s final update saw a surge in player numbers, the studio’s leadership indicated that this final chapter does not change the necessity of the current restructuring.

The Future of Marathon

Despite the workforce reductions, Sony has reaffirmed its commitment to Marathon. According to Hulst, the title "remains an important part of our portfolio." The company intends to continue supporting the development team as they build upon the foundation established during the game's first two seasons, alongside work on early-stage incubation projects.

The announcement follows a difficult week for the developer, marked by reports from former employees describing the workplace environment as dysfunctional. Additionally, the Destiny 2 community lead recently addressed fans, advising them not to blame themselves for the game's closure. Bungie concluded its statement by expressing gratitude toward both the departing staff and those remaining at the studio, asking fans to extend the same compassion during this transition.

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By Senior Writer, In Game News
✓ Verified Analysis
Published: Jun 25, 2026  |  Platform: PC Gaming  |  Status: Official News
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