Bungie preparing for "substantial" layoffs with conclusion of Destiny 2 development, report says

Bungie is reportedly planning to reduce its workforce significantly following the cessation of Destiny 2's development. Jason Schreier from Bloomberg indicated that with no new projects approved despite proposals from the team, there are also no near-term plans to embark on Destiny 3.

After 12 years since the launch of the initial title, Bungie declared this week that it would halt further development on Destiny 2. Although the studio's newest game, Marathon, was released, it reportedly did not meet its projected sales, with Alinea Analytics forecasting a sale of 1.2 million units. The majority of these were sold on the PC platform.

Sony, which acquired Bungie for $3.6 billion in 2022, has gradually retreated from live-service games initiatives initially led by former CEO Jim Ryan. This retreat was marked by the brief two-week lifespan of Firewalk Studios' Concord. Recently, Sony acknowledged a $204.2 million financial hit related to the underperformance of Destiny 2 in its quarterly financial disclosure, as well as a further $565 million in a more recent update.

In recent years, Bungie has been through multiple rounds of layoffs affecting hundreds within the organization. Past reports pointed out that previous CEO Pete Parsons made investments in new projects that ended up being shelved, alongside prolonged development phases for games such as Marathon. Parsons departed the company in 2025.

Destiny 2, a former leader in live-service gaming, has seen a decline in player numbers since its initial release. An uptick was last noted in June 2024 with the narrative wrap-up of The Final Shape. By November 2025, Bungie publicly acknowledged challenges in attracting additional players. Analyst Rob Fahey noted that the game’s narrative completion was potentially too effective at drawing down player engagement.