Bungie announced a reduction in force as it reorganizes after releasing the final major content update for Destiny 2 on June 9, 2026 [1, 2, 3]. The layoffs, made public around June 25-26, affect most of the Destiny 2 development team and some members of the Marathon team [4, 1, 2, 5, 6, 3, 7]. Sony Interactive Entertainment also cut support staff linked to Bungie’s operations [4, 1, 5, 6, 7].

Bungie said in a statement, "With great sadness, we are announcing a reduction in force as we reorganize Bungie. As the leaders of Bungie, past and present, we recognize Destiny 2 fell short of expectations these past several years. Following our final content update to Destiny 2, and with our future projects still in early incubation, we unfortunately could not continue operating at our previous size." [1] CEO of Sony Interactive Entertainment Studio Business Group Hermen Hulst said, "A significant number of employees, including most of the Destiny team and some Marathon team members, are being laid off. There are also reductions across SIE teams that support Bungie’s operations. Those impacted at Bungie and within SIE are being informed today." [1]

Bungie’s workforce had around 800 employees as of April 2026 before the layoffs [1, 5], which will affect at least 292 employees according to a government WARN filing with Washington State, effective July 9, 2026 [7]. The company’s headcount has fallen from a peak near 1,300 in recent years to around 500 after these cuts [7, 1].

Sony completed its $3.6 billion acquisition of Bungie in 2022 [1, 5, 8]. The entertainment giant has taken a $565 million impairment loss related to Bungie’s underperformance with Destiny 2 and Marathon [1, 8]. Yet Hulst emphasized Marathon remains important to Sony and Bungie, saying, "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." [5]

Bungie plans to reveal more details about its future projects later but did not provide specifics at the time of the announcement [4, 2, 5]. The company also expressed empathy in a statement, saying, "We know this decision has a profound impact on the people affected, their families, friends, and teammates. While these changes are necessary to best position the studio now and for the future, that does not lessen the difficulty of this moment or the impact it has on those affected." [9]

The layoffs at Bungie and Sony take effect July 9, 2026, following the end of official Destiny 2 content updates.