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Sony is laying off most of the Destiny team in a painful blow to Bungie
Sony Interactive Entertainment has confirmed it is cutting most of the team behind Destiny and reducing staff among Marathon developers as well. SIE CEO Hermen Hulst shared the news in a blog post on June 25, 2026, stating that those affected at Bungie and within SIE were being informed that same day. While Hulst did not specify an exact headcount, he confirmed a significant number of employees would lose their jobs. Additionally, SIE is eliminating a number of roles across its own teams that support Bungie’s operations.
The announcement marks one of the most significant layoff events in recent gaming industry history and raises serious questions about the future of one of the most storied studios in the business.
How Sony arrived at this decision
Hulst addressed the decision directly in his blog post, acknowledging the gravity of the moment. He explained that over the past several months, Sony and Bungie leadership jointly reviewed the studio’s long-term direction, development priorities, resource needs and role within the broader portfolio strategy. According to Hulst, the teams explored multiple alternatives before concluding that a workforce reduction was the only viable path forward to align the studio’s resources with its current priorities and long-term goals.
The decision did not come out of nowhere. Last month, Bungie officially ended live development on Destiny 2, with a June 9 update serving as a farewell to the game’s active content pipeline. That announcement itself followed Sony’s revelation last fall that Destiny 2 was not performing to the parent company’s financial expectations. Together, those 2 developments painted a clear picture of a studio under serious pressure.
A $3.6 billion acquisition that did not go as planned
Sony purchased Bungie in 2022 for $3.6 billion, roughly five years after the original launch of Destiny 2. At the time, the deal signaled Sony’s ambition to build a stronger live service gaming portfolio. Bungie, with its deep expertise in ongoing multiplayer experiences, seemed like an ideal fit for that strategy.
Four years later, the reality looks considerably different. Following the news about Destiny 2’s end of live development, Bloomberg reported that Sony was preparing to cut a significant number of Bungie workers. Wednesday’s confirmed those reports. The gap between the acquisition price and the current situation represents one of the most expensive and difficult outcomes in recent gaming industry history.
Marathon becomes Bungie’s primary focus
Despite the scale of the cuts, Hulst made clear that Bungie is not shutting down entirely. Instead, the studio is pivoting its efforts toward Marathon, its upcoming extraction shooter franchise. Hulst described Marathon as an important part of Sony’s portfolio and expressed confidence in the team’s direction.
He noted that the studio will continue building on the foundation established in Season 1 and Season 2 of Marathon, while also working on incubation efforts for future projects. Though he acknowledged it was too early to share specifics, he said Sony remains encouraged by the creativity and opportunities ahead for the franchise.
Support for those affected
Hulst closed his statement with a message aimed at both those leaving and those remaining at the studio. He acknowledged that the news is deeply difficult for everyone involved. SIE has committed to providing transition support for affected employees and is actively working to identify relocation opportunities across SIE and its global network of studios where possible.
For the broader gaming community, the news lands hard. Bungie built a dedicated and passionate fanbase over decades, first with Halo and then with Destiny. Seeing most of that team dispersed is a painful moment for an industry that has already endured significant layoffs across multiple studios over the past two years.
Game Developer has reached out to Sony Interactive Entertainment for further details on the scope of the reductions.
Source: Game Developer
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