Bungie Lays Off Hundreds of Employees as Destiny 2 Enters Its Final Chapter

Playstation x Bungie logo graphic

Sony confirms a major restructuring at the storied studio, with most of the Destiny team affected and Marathon positioned as Bungie’s way forward.

Bungie, the studio behind Destiny and the first architect of Halo, confirmed a significant round of layoffs on June 25, 2026. The cuts affect most of the team that worked on Destiny 2, as well as some staff on Marathon, the studio’s newer extraction shooter, and additional roles within Sony Interactive Entertainment teams that supported Bungie’s operations.

The news arrived in two parts: a public letter from Hermen Hulst, CEO of Sony Interactive Entertainment’s Studio Business Group, and a separate statement posted by Bungie itself on social media. Both framed the decision as a difficult but necessary step following the conclusion of active development on Destiny 2.

What Sony and Bungie Said

In his letter to staff, Hulst described the months of internal review that preceded the decision. He wrote that Sony and Bungie leadership reviewed the studio’s long-term direction, development priorities, resource needs, and role within the wider portfolio strategy over several months, and explored multiple alternatives before concluding that a reduction was necessary to realign the studio’s resources with its current and future goals. Hulst called it painful news, particularly for talented colleagues whose roles were eliminated.

Bungie’s own statement was more direct about the cause. The studio acknowledged that Destiny 2 failed to reach the continued commercial success Sony had envisioned for it, and said that following its decision to end Destiny 2 updates, the company found itself unable to retain its previous size. Bungie added that it could not yet share details about what comes next, noting only that future projects remain in early stages.

Neither Sony nor Bungie disclosed an exact headcount publicly. Independent reporting has filled in some of that picture: Forbes reporter Paul Tassi reported there were over 400 people on Bungie’s layoff call, while other outlets, including Kotaku, cited a figure closer to 292 confirmed roles eliminated. Local Bellevue, Washington, reporting put the number at 292 employees, with Bungie headquartered there. Bungie’s overall headcount had already fallen to around 800 employees before this round, down from a pandemic-era peak of roughly 1,300.

This marks the third round of layoffs at Bungie since Sony’s 2022 acquisition of the studio, a deal valued at roughly $3.6 billion.

Why Now: Destiny 2’s End and Marathon’s Rocky Launch

The timing traces back to two recent developments. Destiny 2 received what Bungie has described as its final live-service content update on June 9, 2026, closing out roughly a decade of ongoing expansions and seasonal content for the game. The studio has stated that Destiny 2 will remain online and playable, but will not receive further major content.

At the same time, Marathon — Bungie’s attempt at a new extraction shooter, released in March 2026, has struggled to build a sustained player base despite a positive critical reception in some circles. By one industry estimate, Marathon’s concurrent Steam player count had fallen to just over 3,000 players at the time the layoffs were announced, a steep drop for a major studio’s flagship new release.

Sony has been explicit that Marathon is not being shelved. Hulst’s statement specifically noted that Marathon remains an important part of the portfolio, and that Sony will continue supporting the team as they expand on the foundation established in Season 1 and 2, as well as incubation efforts for future projects. Marathon’s roadmap includes a new PvE-focused mode called Vault Breaker, planned for July 21, and a Season 3 update expected in September 2026.

Bungie’s studio head, Justin Truman, who had held the role for less than a year, is also reportedly stepping down, according to Bloomberg reporter Jason Schreier.

How Developers Reacted

In the hours after the announcement, current and former Bungie employees shared the news of their own layoffs directly, many showing grief over the abrupt end to long tenures at the studio. One affected staff member described losing colleagues who had worked at Bungie since its Halo era, calling the departures a loss of “generational talent.” Another wrote about coming close to a 14-year work anniversary before being let go. Several described the departures as effectively eliminating entire teams, including most of the Destiny visual effects group.

The mood across these posts was largely one of shock mixed with thankfulness toward the group that supported Destiny over the past decade, rather than anger directed at any single party — though some former employees and outside commentators have pointed toward broader leadership and investment decisions as contributing factors to Destiny 2’s commercial decline of its final years.

What This Means Going Forward

For players, the practical impact is clear in the near term: Destiny 2’s servers remain online, and the game stays playable, but it has effectively entered long-term maintenance with no further expansions planned. Marathon continues active development with a smaller team, carrying significantly more weight as Bungie’s primary live project. Beyond that, Bungie has only said that other projects exist in early incubation, without offering specifics on what they are or when more information might be shared.

The restructuring represents one of the more significant moments in Bungie’s post-acquisition history with Sony, and raises real questions about the studio’s size and direction going forward, particularly as it works to stabilize Marathon and determine what, if anything, follows Destiny.

This article is based on official statements from Sony Interactive Entertainment and Bungie, along with reporting from PC Gamer, Kotaku, GosuGamers, and other outlets following the June 25, 2026 announcement. Figures on the scale of the layoffs vary slightly by source, as neither company has released an official total.