Bungie lays off workers as it forms new PlayStation studio

Bungie is making some drastic changes as it integrates more deeply into Sony and deals with the “rising costs of development and industry shifts,” according to a Wednesday announcement.

The company announced that it’s laying off 220 people — roughly 17% of its workforce — from every level of the company in what CEO Pete Parsons called a “difficult and painful day.”

Parsons explained that the layoffs are due to Bungie’s rapid expansion over the past few years (including during the pandemic), which negatively affected development on several incubation projects, its upcoming extraction shooter Marathon, and continued Destiny 2 support. Parsons writes:

All those laid off will receive severance, a bonus, and continued health coverage, Parsons says.

This all coincides with news about Bungie’s continued union with parent company Sony Interactive Entertainment. Not only will 155 roles, or 12% of Bungie’s workers, be integrated into SIE directly due to the downsizing, but the Destiny developer will be creating a new studio inside PlayStation Studios to work on an original action game set in a new sci-fi and fantasy universe. It’s unclear if this is the one of the three main projects Bungie was working on.

Sony acquired Bungie in 2022 for $3.6 billion in a move that would keep the studio independent. This purchase came amid Sony’s attempt to expand into live service games.

Bungie has been struggling over the past few years, having laid off around 100 people in November 2023 due in part to declining Destiny 2 sales. This forced the studio to delay projects, according to Bloomberg, including its most recent expansion, The Final Shape, which released in June with major issues like skipped cutscenes and server problems.