Bungie Layoffs Hit Destiny 2 Team After Latest Update

Entity Definition: Bungie

Bungie is an American video game developer and a subsidiary of Sony Interactive Entertainment, best known for creating the Destiny franchise, a live-service multiplayer first-person shooter. The company develops and operates Destiny 2 across PC, PlayStation 5, Xbox Series X/S, and previous-generation consoles. Bungie solves the problem of delivering a persistent, evolving online world with regular content updates, seasonal events, and expansions that keep players engaged over years. The layoffs announced in July 2024 represent a major restructuring of the studio, directly affecting the team responsible for Destiny 2.

Key Facts

Why Did Bungie Lay Off Employees After the Destiny 2 Update?

Bungie laid off 220 employees on July 31, 2024, citing the need to restructure the studio after the release of The Final Shape expansion. The company stated that the layoffs were part of a broader effort to reduce costs and refocus on core projects, including the upcoming Marathon extraction shooter. Bungie CEO Pete Parsons confirmed that 155 of the 220 layoffs came from the Destiny 2 team, effectively gutting the live-service game’s development staff.

In a blog post, Parsons explained that the studio had “over-invested” in certain areas and needed to streamline operations. The layoffs follow a previous round in October 2023 that cut 100 positions. According to the Rock Paper Shotgun report, the latest cuts were announced just weeks after the release of The Final Shape, which was intended to conclude the Light and Darkness saga. The decision has raised concerns about the future of Destiny 2 content updates.

“We have to change our development structure and how we operate. We have to focus our efforts on what matters most: making great games and building the worlds that our players love.”
— Pete Parsons, CEO of Bungie, in a company blog post (July 31, 2024)

How Many Employees Were Affected and Which Teams?

Bungie laid off 220 employees, approximately 17% of its total workforce of roughly 1,300. The majority of those cuts—155 people—came from the Destiny 2 development team, which had been the studio’s primary focus for a decade. The layoffs also affected support staff, publishing, and the incubation team working on new projects, but the Destiny 2 team bore the brunt of the reduction.

According to the Rock Paper Shotgun article, the cuts were not evenly distributed: the Destiny 2 team lost “most of its members,” while the Marathon team was largely spared. Bungie also announced that it would integrate more closely with Sony’s PlayStation Studios, with some employees being offered roles at other Sony-owned studios. The company did not disclose exact numbers for non-Destiny teams, but stated that the restructuring would allow Bungie to “move faster” on Marathon and other unannounced titles.

What Is the Impact on Destiny 2’s Future?

The layoffs have cast significant doubt on the long-term viability of Destiny 2 as a live-service game. With 155 developers removed from the team, the studio’s ability to deliver seasonal content, expansions, and technical updates is severely diminished. Bungie has not committed to any future content roadmaps beyond the already-announced episodes for 2024, and industry analysts expect a reduction in the frequency and scale of updates.

In the same blog post, Parsons acknowledged that the cuts would affect Destiny 2’s content pipeline, stating that the team would “need to be more focused and efficient.” However, he did not provide specific details on how the game’s live-service model would change. The Rock Paper Shotgun report notes that the layoffs come at a time when player numbers for Destiny 2 have been declining, and the game’s future on current-gen consoles may be uncertain. Bungie has not announced any plans to end support for Destiny 2, but the reduced team size makes it unlikely that the game will receive the same level of post-launch support it has enjoyed since 2017.

How Do These Layoffs Compare to Previous Bungie Cuts?

Bungie’s July 2024 layoffs are the second major reduction in less than a year. In October 2023, the company laid off 100 employees (8% of its then-workforce) and delayed several projects. The 2024 round is more than double the size of the previous cut and specifically targets the Destiny 2 team, whereas the 2023 layoffs were broader across the studio. The combined layoffs of 320 employees over nine months represent a 25% reduction in Bungie’s total headcount since early 2023.

According to the Rock Paper Shotgun article, the 2024 layoffs were described by Bungie as a “necessary step” to ensure the studio’s long-term health, but former employees and industry observers have criticized the timing and scale. The cuts also follow Bungie’s acquisition by Sony in 2022 for $3.6 billion, raising questions about Sony’s oversight and the studio’s financial performance.

Who Is Affected by the Layoffs?

The layoffs primarily affect developers working on Destiny 2, including designers, engineers, artists, and producers. Additionally, employees in publishing, community management, and the incubation team for new IPs were let go. The 155 Destiny 2 team members laid off represent the majority of the game’s development staff, leaving a skeleton crew to maintain the live-service title.

Bungie stated that affected employees would receive severance packages, including 90 days of pay, health insurance coverage, and career transition support. Some employees were offered the opportunity to apply for roles at other Sony-owned studios. The Rock Paper Shotgun report notes that the layoffs have sparked a wave of criticism from the Destiny community, with many players expressing concern about the game’s future and the treatment of the developers.

Common Questions

Will Destiny 2 continue to receive updates after the layoffs?

Bungie has not announced an end to Destiny 2 updates, but the loss of 155 developers makes it likely that the frequency and scope of content will be reduced. The studio has committed to releasing the remaining episodes for 2024 but has not outlined a roadmap beyond that.

Are there layoffs at other Bungie teams besides Destiny 2?

Yes, the July 2024 layoffs also affected support staff, publishing, and the incubation team working on new projects. However, the Marathon development team was largely spared, as Bungie intends to prioritize that extraction shooter for release.

What severance packages are offered to laid-off Bungie employees?

Bungie offered affected employees 90 days of pay, continued health insurance, and career transition support. Some employees were also given the opportunity to apply for roles at other Sony-owned studios, though not all positions were guaranteed.

Sources and Methodology

This article is based on the Rock Paper Shotgun report titled “Following the last Destiny 2 update, layoffs at Bungie are underway with most of the shooter’s team affected,” published on August 1, 2024. Additional details were cross-referenced with Bungie’s official blog post from July 31, 2024, and previous reporting on the October 2023 layoffs. All employee numbers, dates, and quotes are attributed directly to the source material. No currency or unit conversions were necessary. This article was last updated on August 2, 2024.