Full Breakdown
Bungie Announces Major Layoffs After Destiny 2’s End
6/25/2026, 11:48:55 PM
End of Destiny 2 and Immediate Layoffs
On June 25 2026 Bungie confirmed a “reduction in force” following the final Destiny 2 live-service update (Monument of Triumph). The cuts affect “most of the Destiny team and some Marathon team members,” as well as Sony Interactive Entertainment (SIE) staff that support the studio. The announcement came via a joint Bungie social-media post and an internal memo from SIE’s Studio Business Group CEO Hermen Hulst.
Background & Context
Sony acquired Bungie in 2022 for $3.6 billion, aiming to bolster its live-service portfolio. Since then the studio has undergone three rounds of downsizing (2023, 2024, 2026). Destiny 2’s player base and revenue declined sharply after the 2023 Lightfall expansion, and the game’s final update in June 2026 marked the end of active development. Marathon, an extraction shooter launched earlier in 2026, has underperformed relative to expectations, prompting Sony to refocus resources.
Key Figures & Groups
- Hermen Hulst – CEO, SIE Studio Business Group, author of the layoff memo.
- Justin Truman – Bungie studio head, announced to be stepping down.
- Pete Parsons – Former Bungie CEO (2020-2025), previously described prior cuts as “a sad day.”
- Liana Ruppert – Former Bungie community manager, vocal critic of funding decisions.
- Bungie teams – Destiny 2 development, Marathon development, and SIE support staff.
Timeline
- 2022 – Sony purchases Bungie for $3.6 bn.
- Oct 2023 – 100-person layoff (?8% of 1,200 staff).
- Jul 2024 – 220-person layoff (?17% of workforce).
- Jun 9 2026 – Destiny 2 final content update released.
- Jun 25 2026 – Announcement of current layoffs; internal emails confirm “most” of Destiny staff are affected.
Data & Statistics
- Bungie employed ~850 staff in 2024; earlier reports cite ~1,200 in 2023.
- Layoff estimates range from 400 individuals to 40-55% of the studio.
- Revenue was reported 45% below projections in 2023.
- Sony recorded a $700 million impairment loss on Bungie in 2025 and a $765 million loss after Marathon’s launch.
Why It Matters / Impact
The cuts shrink Bungie’s capacity to develop new IP, leaving Marathon as the sole active project. Sony’s portfolio loses a flagship live-service franchise, potentially reshaping its strategy away from large-scale multiplayer titles. For the roughly several hundred displaced employees, the layoffs represent a sudden loss of livelihood and raise questions about the sustainability of mid-size studios under corporate ownership.
Official Statements & Responses
Bungie’s public statement expressed “great sadness” and acknowledged that Destiny 2 “fell short of expectations.” It emphasized the decision’s “profound impact” on staff while promising future updates once projects are further defined. Hermen Hulst’s memo described the move as “painful” but “necessary to align the studio’s resources with current priorities and long-term goals,” noting that Marathon remains “an important part of our portfolio.” The memo also highlighted transition support for affected employees. Additionally, Bloomberg reported that studio head Justin Truman will step down.
Criticism & Opposition
Former community manager Liana Ruppert claimed “a lot of money didn’t go into Destiny” due to leadership “greed,” suggesting under-funding contributed to the franchise’s decline. Some observers noted the 2020 removal of Destiny’s story content (“content vault”) as a factor that alienated players. Critics argue that the layoffs were inevitable given repeated revenue shortfalls and prior cost-cutting cycles.
Conflicting Reports & Gaps
Sony has not disclosed an exact layoff figure; estimates vary between “a significant number,” roughly 400 employees, and “up to 55%” of the studio. No new Destiny project has been confirmed, and details of the “early incubation” efforts remain undisclosed.
Verbatim Quotes
- “With great sadness, we are announcing a reduction in force as we reorganize Bungie.” — Bungie, official statement
- “As the leaders of Bungie, past and present, we recognize Destiny 2 fell short of expectations these past several years.” — Bungie leadership
- “This is painful news, especially for talented colleagues whose roles have been eliminated.” — Hermen Hulst, SIE memo
- “Marathon remains an important part of our portfolio, and we will continue to support the team as they build on the strong foundation established in Season 1 and 2, and as they work on incubation efforts for future projects.” — Hermen Hulst
- “A lot of money didn't go into Destiny” due to leadership “greed.” — Liana Ruppert, former community manager
What’s Next
Bungie plans to launch an experimental PvE mode for Marathon next month and continue “incubation” projects such as the code-named “Gummy Bears” MOBA-style prototype. Sony will provide transition assistance and may reassign some staff to other PlayStation Studios. The studio’s long-term direction remains uncertain pending further announcements.
