Sony and Bungie lay off “most” of the Destiny 2 team as well as some from Marathon

Bungie has announced a significant “reduction in force” following the end of development on Destiny 2. The layoffs, confirmed on June 25, 2026, affect most of the Destiny 2 team, some Marathon developers, and supporting staff at Sony Interactive Entertainment. According to a WARN notice, 292 full-time positions were eliminated in Washington where Bungie is headquartered.

The layoffs come roughly two weeks after Destiny 2 received its final major content update on June 9. In a public statement, Bungie leadership acknowledged that “Destiny 2 fell short of expectations these past several years” and that the studio “could not continue operating at our previous size” without ongoing development on its flagship title. With future projects like the extraction shooter Marathon still in early development stages, the company determined it needed to realign its workforce.

Sony Interactive Entertainment CEO Hermen Hulst described the decision as “painful” but “necessary to align the studio’s resources with its current priorities and long-term goals.” He confirmed that multiple alternatives were explored before the layoffs were finalized. While exact total figures weren’t publicly disclosed by the company initially, both statements emphasized the significant impact on affected employees and their families.

The announcement marks a major workforce reduction at Bungie, which has been developing Destiny since 2014. Industry figures reacted with shock at the scale of the cuts, with some noting the loss of “generational talent.” The layoffs follow years of challenges for Destiny 2, which struggled to maintain player engagement compared to earlier years.

Sources

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