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Bungie has confirmed that it is undergoing a major downsizing effort, marking the end of Destiny 2 development and a significant shift in the studio's future plans. The announcement follows the release of Destiny 2's final content update earlier this month.
As reported by Insider Gaming, PlayStation Studios head Hermen Hulst informed staff in an internal memo that “most of the Destiny team and some people on the Marathon team will be let go”. Earlier reports had suggested that only the Destiny team would be affected, but Sony has now confirmed that layoffs will extend beyond that group. Sony has since published Hulst's memo publicly.
Bungie issued its own statement acknowledging the scale of the restructuring, saying: “With great sadness, we are announcing a reduction in force as we reorganize Bungie”. The studio added that Destiny 2 “fell short of expectations these past several years” and that it “could not continue operating at our previous size” with future projects still in early incubation.
This aligns with earlier reporting that Bungie would shift most of its resources toward Marathon following Destiny 2's final update. Prior to today's confirmation, sources had indicated that Bungie was preparing for massive layoffs this summer, though the studio has not disclosed how many employees are affected. Previous rumors suggested the cuts could be as much as 50%, which would be roughly 400 employees.
Bungie says it will share more about its future at a later date, but for now, the studio is focused on supporting those impacted by the restructuring. “We know this decision has a profound impact on the people affected, their families, friends, and teammates,” the studio said. Bungie added that it is extending its gratitude to those impacted and “hopes you will do the same”.
KitGuru Says: Bungie achieved its long-held goal of becoming a multi-game studio when it shipped Marathon, but it didn't last very long and certainly didn't end in the way that anybody expected.
