Sony Cuts ‘Most of the Destiny Team’ at Bungie in Major Layoff

Sony said Thursday that it is cutting a significant number of jobs at Bungie, the game studio behind the “Destiny” franchise, with the reductions affecting “most of the Destiny team” and some staff working on “Marathon.” Kotaku, citing a Washington state WARN filing, reported that at least 292 employees are being laid off, with a separation date of July 9.

The cuts amount to a major reset for one of Sony’s best-known game studios. They come just weeks after Bungie said “Destiny 2” had received its final live-service content update, underscoring a sharp shift in the studio’s development plans. Bungie has been central to Sony’s push in live-service games since the company agreed to buy the studio in 2022 for about $3.6 billion.

In an internal email published by Sony Interactive Entertainment on Thursday, Hermen Hulst, CEO of the Studio Business Group at PlayStation, said: “We have made the decision to reduce Bungie’s workforce, affecting a significant number of employees, including most of the Destiny team and some Marathon team members. There are also reductions across SIE teams that support Bungie’s operations. Those impacted at Bungie and within SIE are being informed today.”

That means the cuts extend beyond Bungie itself to Sony Interactive Entertainment teams that support the studio’s operations. Sony did not give a total number in Hulst’s message, but Kotaku reported the 292 figure based on the Washington filing.

The timing is especially notable because Bungie had already told players that active live-service development on “Destiny 2” was ending. In a May 21 post on Bungie’s official site, the studio said: “To that end, on June 9, 2026, we will release the final live-service content update for Destiny 2 to begin that new journey as a studio.”

Sony said the layoffs followed a broader review of Bungie’s future inside PlayStation. Hulst said: “Over the past several months, together with Bungie leadership, we reviewed the studio’s long-term direction, development priorities, resource needs, and role within our broader portfolio strategy. We explored multiple alternatives before concluding that a reduction was necessary to align the studio’s resources with its current priorities and long-term goals.”

At the same time, Hulst said “Marathon” remains an important part of Sony’s portfolio and that the company will continue to support the team working on it, even as some members of that team were affected by the cuts.

The downsizing adds to a difficult stretch for Bungie since Sony’s acquisition. In Sony’s financial reporting for the fiscal year ended March 31, 2026, the company recorded an impairment loss of about 120.1 billion yen, or roughly $765 million, tied to Bungie assets. The studio had also previously cut about 100 jobs in October 2023 and about 220 more in July 2024.

For Sony, the layoffs are significant both because of Bungie’s stature in the games business and because the studio was acquired as a key part of PlayStation’s live-service strategy. For Bungie, they mark a new phase after the end of “Destiny 2” live-service updates and amid continued work on “Marathon.”

Affected workers were being informed Thursday, according to Hulst’s email. Kotaku’s report on the Washington WARN filing said the employees’ separation date is July 9.