Bungie is attempting to sublease its expansive 210,984-square-foot headquarters in Bellevue, Washington, a facility that was significantly expanded in 2021. This move comes amidst a period of substantial layoffs and financial restructuring for the company.
The leasing brochure describes the space as a "turn-key" production facility, equipped with amenities such as a dedicated lobby, gym, a rock climbing wall, a motion-capture studio, a cafe, catering areas, and a private exterior patio. The master lease for the property is set to run through September 30, 2035.
A statement from Bungie confirmed the sublease exploration, explaining that the studio has transitioned to a digital-first model and that the move reflects the team's changing workplace requirements and the effectiveness of remote collaboration. Bungie also stated that it will continue to maintain a physical office presence in Bellevue.
The 2021 expansion, which more than doubled the company's office space from 84,000 to nearly 211,000 square feet, was initiated during a period of reported growth and opportunity. However, this expansion occurred at a time when many companies in the gaming industry made significant investments, fueled by low interest rates and increased at-home entertainment revenue during the COVID-19 pandemic. Bungie formally adopted remote work eligibility for most roles in 2022, rendering the large-scale office expansion less critical.
The studio's financial trajectory has seen challenges since its acquisition by Sony for $3.6 billion in 2022. Following the acquisition, Bungie engaged in a significant hiring spree, reportedly to support multiple simultaneous incubation projects. This was followed by a mass layoff in October 2023, affecting approximately 100 employees. A further reduction of 220 developers occurred in July 2024, reportedly due to leadership having "overstated their studio’s financial prospects to Sony." Despite the success of Destiny 2's Final Shape expansion, these issues led to increased oversight from Sony and a dire fiscal outlook.
Additional layoffs impacted the company in June 2026, with a WARN notice indicating at least 292 jobs were affected, largely in the aftermath of Destiny 2's end of live service. At its peak, Bungie employed over 1,600 people; by July 2024, the studio's headcount was around 850. The current workforce is significantly smaller than the space available, with fewer than 600 employees to fill the 211,000-square-foot headquarters.
Bungie's situation reflects a broader trend in the games industry, where ambitious expansions and acquisitions made during the pandemic's peak have led to subsequent cost-cutting measures and layoffs as market conditions shifted.