Sony has laid off most of the Destiny team, some Marathon developers, and support staff across Sony Interactive Entertainment, marking the deepest cuts yet at a studio it purchased for $3.6 billion in 2022.
Hermen Hulst, CEO of SIE's Studio Business Group, announced the layoffs Thursday in an internal email later published on Sony's website. The cuts affect "a number of employees, including most of the Destiny team and some Marathon team members," Hulst wrote.
SIE teams that support Bungie's operations were also hit. A WARN notice filed in Washington state confirms at least 292 people have been laid so far, and Forbes reported the target was around 50% of the studio. Bungie studio head Justin Truman, who replaced former CEO Pete Parsons last year, is stepping down as part of the restructuring, according to Bloomberg.
The layoffs were expected. Destiny 2 received its final content update, Monument of Triumph, on June 9, ending a nine-year run.
Bloomberg reported last month that Sony was preparing significant cuts once the game's content pipeline dried up. Bungie acknowledged on social media that Destiny 2 "fell short of expectations these past several years" and that with "future projects still in early incubation," the studio could not maintain its previous size.
This is the third round of mass layoffs since Sony's acquisition. Bungie cut 100 roles in October 2023 after revenue ran 45% below projections.
Another 220 employees (17% of the studio) were laid off in July 2024. In the span of three years, Bungie has shed roughly half its workforce.
Sony's bet on Bungie has soured fast. The PlayStation company recently reported a $765 million impairment loss tied to Bungie assets after Marathon's launch.
Sony has not disclosed how the extraction shooter has performed since its release earlier this year, though Forbes reported it "has not met expectations since launch and continues to bleed players."
Hulst stressed that Marathon "remains an important part of our portfolio" and said Sony would continue supporting the team as it builds on Seasons 1 and 2 and works on "incubation efforts for future projects." Bungie has no greenlit projects beyond Marathon.
The layoffs come despite Sony's 2022 promise that Bungie would "continue to operate independently, maintaining the ability to self-publish and reach players wherever they choose to play." That independence has eroded with each successive round of cuts, and the $3.6 billion price tag now looks like one of the most expensive misfires in recent gaming M&A history.
Sony said it will provide transition support to affected workers and is attempting to identify relocation opportunities across SIE and its global network of studios where possible.
