Gaming
Bungie Cuts Nearly 300 Jobs as Sony-Owned Studio Restructures Following Destiny 2 Challenges
In a public statement shared on social media, Bungie acknowledged that the recent performance of Destiny 2 had failed to meet internal expectations despite years of ongoing expansions and updates.
The studio behind two of gaming’s most iconic franchises is undergoing another major restructuring. Bungie has laid off nearly 300 employees at its headquarters in Bellevue, marking the third round of significant workforce reductions in just three years. The layoffs come as the Sony-owned developer reassesses its long-term strategy following weaker-than-expected performance from its flagship title, Destiny 2, and shifts focus toward future projects currently in early development.
Nearly 300 Employees Affected
According to a state regulatory filing, 292 employees at Bungie’s downtown Bellevue office lost their jobs on Wednesday.
The workforce reduction primarily impacts teams working on the Destiny franchise, while some members involved in the upcoming first-person shooter Marathon were also affected.
Hermen Hulst informed employees that the cuts would significantly affect development teams across the studio as part of a broader restructuring effort within Sony Interactive Entertainment.
Bungie Explains the Decision
In a public statement shared on social media, Bungie acknowledged that the recent performance of Destiny 2 had failed to meet internal expectations despite years of ongoing expansions and updates.
The company said the latest restructuring followed the franchise’s final major content update cycle and reflected the reality that its upcoming projects remain in the early stages of development.
“With our future projects still in early incubation, we unfortunately could not continue operating at our previous size,” the studio said.
Bungie added that the layoffs were part of a broader organizational realignment intended to position the company for future releases.
Third Round of Layoffs Since Sony Acquisition
The latest cuts continue a difficult period for Bungie since its $3.6 billion acquisition by Sony Interactive Entertainment in 2022.
The Bellevue-based studio previously eliminated approximately 320 positions across two separate rounds of layoffs between late 2023 and mid-2024.
The latest workforce reduction brings the total number of reported job losses since the acquisition to well over 600 employees.
From Expansion to Downsizing
The layoffs represent a dramatic shift from Bungie’s ambitious growth plans announced just a few years ago.
In 2021, the independent developer significantly expanded its downtown Bellevue headquarters, increasing its office footprint from approximately 84,000 square feet to more than 208,000 square feet. The company also leased additional office space in downtown Seattle as it prepared for future growth.
At the time, city records indicated Bungie employed roughly 1,000 people in Bellevue.
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A Legendary Studio Faces Industry Challenges
Founded in 1991, Bungie became a household name after being acquired by Microsoft in 2000. The studio developed the groundbreaking Halo franchise, which launched alongside the original Xbox and helped establish Microsoft’s gaming platform.
After regaining its independence, Bungie created the Destiny franchise before joining Sony in 2022.
The layoffs also arrive as Microsoft’s Xbox gaming division is reportedly preparing for additional workforce reductions following leadership changes and a broader organizational reset tied to development of its next-generation gaming hardware.
The latest developments highlight ongoing challenges across the video game industry, where rising development costs, shifting player expectations, and changing business strategies continue to reshape even some of the sector’s most established studios.
