Bungie Confirms Layoffs Following Destiny 2's Final Update

The studio cites a need to reorganize and better position itself for future projects.

Jun 25, 2026
Industry & Business
Bungie Confirms Layoffs Following Destiny 2's Final Update

Bungie has confirmed that layoffs are currently underway at the studio, a development that follows the recent release of Destiny 2's final major update. This marks a significant shift for the long-running developer, which had previously announced the June update would be the last of its kind for the popular shooter MMO.

In a statement, Bungie acknowledged that Destiny 2 "fell short of expectations these past several years," and stated that "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." The company expressed "great sadness" regarding the reduction in force, recognizing the "profound impact" on affected staff and their families. The statement emphasized that these changes are "necessary to best position the studio now and for the future."

Details shared by Sony Interactive Entertainment CEO Hermen Hulst indicate that the layoffs impact the majority of the Destiny team, as well as some members of the Marathon development team. Reductions are also occurring across Sony Interactive Entertainment teams that provide support for Bungie's operations. Despite these changes, Marathon "remains an important part of our portfolio," with continued support pledged for the team as they build upon their foundation and pursue incubation efforts for future projects.

Bungie's decision to downsize follows a period where Destiny 2 did not meet internal expectations, leading to a strategic reorganization aimed at ensuring the studio's long-term viability and focus on upcoming initiatives. The specific number of employees affected by the layoffs has not been disclosed.

Sources