Sony Confirms Bungie Layoffs Affect “Most of the Destiny Team” and Some Marathon Staff

Sony has confirmed that Bungie’s layoffs affect most of the Destiny team, some Marathon staff, and SIE teams that support Bungie.

Bungie has officially announced layoffs as part of a wider studio reorganization, saying it is reducing its workforce after Destiny 2 fell short of expectations in recent years. In its statement, the studio said the decision comes after Destiny 2’s final live service content update and while its future projects are still in early incubation.

The studio did not share the number of affected employees in its own message, but it made clear that the cuts are tied to where Bungie is now as a company. Bungie said it could no longer continue operating at its previous size, while also asking the community to show kindness and respect to the people impacted by the layoffs.

Now, Sony Interactive Entertainment has shared more details. In a new post on the SIE blog, the company published an internal email from Hermen Hulst, CEO of the Studio Business Group at Sony Interactive Entertainment, that was sent to SIE employees.

Sony Says Bungie Layoffs Affect Most of the Destiny Team

In the email, Hulst confirmed that the layoffs affect a “significant” number of Bungie employees, including most of the Destiny team and some Marathon team members. He also said there are reductions across SIE teams that support Bungie’s operations.

“We have made the decision to reduce Bungie’s workforce, affecting a significant number of employees, including most of the Destiny team and some Marathon team members,” Hulst said. “There are also reductions across SIE teams that support Bungie’s operations. Those impacted at Bungie and within SIE are being informed today.”

That is a much clearer picture than Bungie’s earlier public statement. It confirms that the impact is not limited to a small part of the studio. Destiny, the franchise that has defined Bungie for over a decade, appears to be taking the heaviest hit after the end of Destiny 2’s planned live service content.

Hulst said the decision came after months of review with Bungie leadership. According to the email, Sony and Bungie looked at the studio’s long-term direction, development priorities, resource needs, and its role within PlayStation’s wider portfolio before deciding that layoffs were needed.

“This is painful news, especially for talented colleagues whose roles have been eliminated. This decision was made only after extensive discussion and careful consideration, and I want to provide some context on how we arrived here.

“Over the past several months, together with Bungie leadership, we reviewed the studio’s long-term direction, development priorities, resource needs, and role within our broader portfolio strategy. We explored multiple alternatives before concluding that a reduction was necessary to align the studio’s resources with its current priorities and long-term goals.

“As Bungie recently shared in its Destiny 2 update, the studio has begun a new journey following the release of the game’s final live-service content update. What Bungie has accomplished with Destiny over the past decade has been truly remarkable. The franchise has left a lasting mark on players and the industry, and everyone who contributed to its success should be proud of what they helped create.”

Marathon is also affected, but Sony is not backing away from it. Hulst said Marathon “remains an important part” of PlayStation’s portfolio, and that Sony will continue supporting the team as it builds on the work done in Season 1 and Season 2. He also pointed to future incubation efforts, though he said it is too early to talk about those projects.

“Marathon remains an important part of our portfolio, and we will continue to support the team as they build on the strong foundation established in Season 1 and 2, and as they work on incubation efforts for future projects. While it’s too early to discuss, we are encouraged by the creativity and opportunities that lie ahead.”

For Destiny fans, this is a rough update. Destiny 2 already reached a major turning point with its final live-service content update, and now Sony has confirmed that most of the team behind the game is affected by layoffs.

What do you think about Bungie’s future after Destiny 2? Let us know your thoughts in the comments below!