Bungie has announced the termination of 220 employees, admitting that its previous goals were "overly ambitious".
Bungie has announced the layoff of 220 developers, which is 17% of its total workforce.
CEO Pete Parsons cited the need for "substantial changes to our cost structure and focus development efforts entirely on Destiny and Marathon" as the reason for the layoffs.
In a statement posted on Bungie's official website, Parsons remarked, "This morning, I’m sharing with all of you some of the most difficult changes we’ve ever had to make as a studio."
The layoffs, according to Parsons, are driven by "rising development costs, industry shifts," and ongoing economic challenges, necessitating a major overhaul in cost and development focus.
All levels of the company will feel the impact, including executive and senior leadership roles, Parsons noted.
Parsons acknowledged the difficulty of the situation for departing team members, describing their contributions as important and significant. He stated that Bungie aims to support the affected employees with a comprehensive exit package covering severance, bonuses, and health benefits.
Despite the recent success of The Final Shape, Parsons emphasized the necessity of these layoffs due to broader economic challenges and exhausted mitigation options, aiming to refocus the company with achievable goals and sustainable finances.
Additionally, 155 positions are being moved to Sony Interactive Entertainment, which represents about 12% of Bungie's staff, to strengthen their integration with Sony.
Another 75 employees will collaborate with PlayStation Studios leadership on an incubation project, creating a new studio focused on an action game in a new science-fantasy universe.
"SIE has worked tirelessly with us to identify roles for as many of our people as possible, enabling us together to save a great deal of talent that would otherwise have been affected by the reduction in force," Parsons mentioned.
Considering the 100 employees laid off last November, Bungie’s workforce has decreased from 1,300 to roughly 850.
Parsons reflected on the situation, noting that Bungie had aimed to develop three lasting global franchises over the past five years. However, this vision led to an overload on their resources due to multiple incubation projects, stretching their talent thin and overextending their support capabilities. This became unsustainable given their two main projects, Destiny and Marathon.
In 2023, Bungie faced several challenges, including a broader economic slowdown, difficulties in the gaming industry, a quality issue with Destiny 2: Lightfall, and the need to allocate proper time for The Final Shape and Marathon to meet player expectations. These factors contributed to financial overextension, leading to the decision to downsize.
Despite efforts to avoid layoffs, Parsons admitted that extensive measures by the leadership and product teams were insufficient, resulting in the need to part ways with valued team members.
He concluded by stating that the coming weeks and months will be pivotal as Bungie supports its remaining staff, holding team meetings and individual sessions to maintain open communication. The immediate focus will remain on assisting their people through this transition, with talks about future goals and projects to follow.
