Bungie Confirms Plans to Sublease Parts of Its Enormous Bellevue Headquarters Following Mass Layoffs

Bungie is subleaseing approximately 211,000 square feet of its Bellevue, Washington headquarters through September 2035, marking a dramatic reversal from the studio’s expansion ambitions just five years prior. The move follows significant layoffs in June and reflects Bungie’s strategic shift toward a “digital first” operational model.

In 2021, Bungie’s CEO announced an ambitious headquarters expansion, more than doubling office space from 84,000 to 211,000 square feet at a reported cost of hundreds of millions of dollars. The expansion was justified by the studio’s projected “tremendous growth and opportunity.”

However, the intervening years proved challenging for Bungie, marked by repeated mass layoffs, cancelled projects, and underperforming live-service launches. The sublease decision signals both a recognition of current staffing realities and a broader industry shift toward remote-first operations. Despite subleaseing most of the space, Bungie stated it will maintain a physical office presence in Bellevue.

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