Bungie Layoffs Hit Majority of Destiny Team and Part of Marathon Team
The cuts effectively end active development on Destiny 2 at Bungie and signal a strategic pivot toward Marathon as SIE's primary live-service bet, while the studio's repeated downsizing raises questions about its long-term stability under Sony ownership.
Reporting from 4 sources: 4Gamer.net, Denfaminicogamer, Automaton, Game Spark.
On June 25, 2026, Sony Interactive Entertainment and its subsidiary Bungie announced a round of layoffs affecting the majority of the Destiny development team, part of the Marathon team, and some SIE staff supporting Bungie's operations. In a statement, Bungie said Destiny 2 has not met expectations in recent years and that the current development structure cannot sustain future plans. The studio has delivered the final live service content update for Destiny 2 and is transitioning to a new phase. SIE CEO of the Studio Business Group Hermen Hulst sent an internal email explaining that the decision followed months of review with Bungie's leadership regarding long-term direction and resource needs. Marathon will remain a key pillar of the SIE portfolio, with full team support continuing. Incubation for future projects is underway, though details have not been shared. Affected employees will receive severance, job transition support, and opportunities within SIE's global studio network where possible. This is Bungie's third round of major layoffs in five years.
Bungie announced the layoffs via its official X account on June 25, and SIE updated the PlayStation Studios blog with the scope. The company said it considered multiple alternatives before deciding on the reduction.
Destiny 2 launched in 2017 and went free-to-play in 2019. Its "Final Shape" expansion in June 2024 concluded the Light and Darkness saga, but subsequent expansions "Fate's Boundary" and "Rebellion" received poor user reviews. Player counts on Steam declined after Final Shape, though a brief recovery pushed concurrent players to about 170,000 on June 10. In May 2026, Bungie announced the end of Destiny 2 development and delivered the final update.
In an internal email, Hermen Hulst said the decision followed months of review with Bungie's management on "long-term direction, development priorities, resource needs, and role within the broader portfolio strategy." He called Destiny's 10-year run "truly remarkable." For Marathon, Hulst said the company will support the team continuing development on the foundation built in Seasons 1 and 2. On incubation projects, he said, "It's not yet time to share details, but I am encouraged by the creativity and opportunities ahead."
This is Bungie's third round of major layoffs in five years. After a previous round, SIE integrated 155 affected staff into the company and formed a new studio, teamLFG, staffed largely by former Bungie employees.
Synthesized by Yomimono from the 4 cited sources below, including Japanese-language reporting where cited, then editorially reviewed before publishing.
Sources
- 4Gamer.net Bungieが組織再編に伴う人員削減を発表。「Destiny」チームの大半，「Marathon」チームの一部などが対象
- Denfaminicogamer SIE、傘下のスタジオBungieで人員削減の実施を発表。『Destiny』開発チームの大部分や『Marathon』チームの一部などが対象に
- Automaton 『Desitny 2』開発を終えたSIE傘下Bungieで早くも大規模レイオフ。“『Destiny』開発チームの大半”が削減対象に
- Game Spark SIE、Bungieの大規模人員削減を発表―『Destiny』チームの大半と『Marathon』チームの一部が対象