Bungie studio head steps down following mass layoffs

Bungie confirmed layoffs yesterday but didn’t share specific numbers. However, reports now indicate that around 400 employees are being let go, aligning with earlier claims that Bungie was preparing to reduce its headcount by roughly 50%.

According to journalist Paul Tassi, roughly 400 employees were present for the internal meeting announcing the cuts, meaning that close to 50% of the studio is being laid off, which is in line with previous reporting. This follows Bungie’s confirmation yesterday that it is undergoing a major downsizing effort following the end of development on Destiny 2.

Bloomberg's Jason Schreier has also reported that Justin Truman, Bungie’s studio head, is stepping down in the aftermath of the layoffs. Truman took over leadership in 2025, succeeding former CEO Pete Parsons. Parsons oversaw Bungie’s acquisition by Sony, a deal that has since struggled to deliver results for either side.

Sony has already acknowledged that Bungie is now worth significantly less than the $3.6 billion it paid for the studio, recording an impairment loss of roughly $750 million.

The layoffs impact the vast majority of the Destiny team, as well as some members of the Marathon team, in addition to some Sony staff that worked alongside Bungie. While Destiny 2 is no longer actively being worked on, Bungie will continue to produce new content for Marathon, starting off with an experimental PvE mode, due to roll out soon. Beyond that, Bungie says it has ‘multiple' new projects in incubation, but it is unclear if any of them are Destiny related.

Bungie has not commented on the reported number of affected employees or on Truman’s departure. The company has said it will share more about its future plans at a later date.

KitGuru Says: Bungie is now a much, much smaller studio than it was a year ago, and roughly 75% smaller than it was under Activision during the first year of Destiny 2, which makes a future Destiny 3 all the more unlikely.

Become a Patron!