What just happened? Bungie is cutting hundreds of jobs and scaling back its Destiny 2 operation as Sony and the studio rethink their live-service tech and shift resources toward new projects like the extraction shooter Marathon. The layoffs follow Destiny 2's final content update on June 9, closing out a long run for a technically demanding live-service shooter.
For years, Bungie kept Destiny 2 online with a big technical footprint, from backend systems for progression and matchmaking to tools for live events and constant content updates. Now, with that pipeline winding down and new games still in early incubation, the studio is cutting back the team that supports those systems.
Bungie acknowledged the cuts in a statement posted on X, saying "we are announcing a reduction in force as we reorganize Bungie." The studio didn't include a number in that message, but a Worker Adjustment and Retraining Notification filed by Sony in Washington shows about 292 employees will be laid off from Bungie's Bellevue headquarters.
Hermen Hulst, CEO of Sony Interactive Entertainment's Studio Business Group and head of PlayStation Studios, told staff the layoffs hit most of the Destiny team, some Marathon developers, and Sony Interactive Entertainment employees who support Bungie.
Hulst said leadership at Sony and Bungie spent months reviewing the studio's role in Sony's broader live-service strategy and the technical resources that would be needed going forward.
Marathon is a key part of that plan. Released in March as an extraction shooter, it runs on a different model than Destiny 2 but still relies on persistent online services and live updates. Hulst said that Marathon "remains an important part of our portfolio," and Bungie has announced new content is planned through at least the end of 2026. Even so, some Marathon team members are part of the layoffs.
– Bungie (@Bungie) June 25, 2026
Bungie has been through several rounds of layoffs since Sony bought it for $3.6 billion, a deal pitched as a way to expand Sony's presence in live-service games. Those cuts in 2023 and 2024 came as the wider market for always-online titles began to cool after years of heavy investment.
Across the industry, ambitious live-service projects have been canceled or shut down, and even big hits have been restructured as publishers rethink the cost of running large online games. The layoffs at Bungie also follow a period when Destiny 2 struggled to meet internal expectations.
Inside Bungie, the focus now is on what comes after Destiny 2. The studio has said its future projects are "still in early incubation."
Bungie told players and staff that more information will come later, but it's not ready to share details yet. As the company put it in its statement, it plans to talk more about what's next, but "today is not that day."