Bungie has laid off nearly 300 employees at its Bellevue, Washington headquarters, according to official records. A Worker Adjustment and Retraining Notification (WARN) notice, filed by Sony with the Washington State Employment Security Department, states that 292 staff were let go with a formal separation date of July 9. This figure pertains solely to the Washington office and does not include potential cuts to staff in other locations.
This marks Bungie's third round of layoffs in three years. Between October 2023 and July 2024, the studio reportedly cut around 320 employees. Sony Interactive Entertainment CEO of the Studio Business Group, Hermen Hulst, acknowledged the difficult decision, stating that a "significant" number of employees were affected, impacting "most of the Destiny team and some Marathon team members.” Hulst described the layoffs as "necessary to align the studio’s resources with its current priorities and long-term goals."
The cuts follow the recent conclusion of new content for Destiny 2 and a troubled launch for the extraction shooter Marathon, which has reportedly struggled to attract players despite a significant budget. Sony has reiterated its commitment to Marathon, with its development team also contributing to future project incubation efforts.
The WARN notice indicates that staff across all departments were affected, including artists, technical animators, audio leads, sound designers, engineers, producers, systems designers, and integrated Sony support teams. Some long-term Bungie employees have confirmed their departure on social media. Reports suggest that Bungie studio head Justin Truman has stepped down, with former VP of Operations Poria Torkan reportedly taking charge.
There has also been speculation regarding the departure of Bungie co-founder and Chief Vision Officer Jason Jones, though this remains unconfirmed. Jones, who co-created Halo and Destiny, has maintained a low profile in recent years.
Bungie has faced financial challenges, including a reported $765 million impairment loss by Sony attributed to the studio's underperformance. Issues with Destiny 2 reportedly began around the time of the "Edge of Fate" expansion, which underperformed, leading to decisions against relaunching the franchise as "Destiny Infinity" due to high costs and risks. The concept of Destiny 3 was also considered but not pursued, with production costs cited as a primary obstacle.
The Destiny franchise has a complex history, including its early split from Activision in 2019. Since then, Bungie has self-published Destiny 2, but has struggled with declining player numbers and underperforming expansions. Marathon, which launched in early March with a reported budget exceeding $250 million, has also reportedly fallen short of sales expectations.