Destiny 2 Maker Bungie Latest PlayStation Studio To Cut Staff

Destiny's main characters stand above The Traveller.

Image: Bungie

Bungie is the latest PlayStation studio to face layoffs. While the scale of the cuts wasn’t immediately apparent, multiple, now-former staff members began posting on social media on October 30 that they’d been let go by the beloved Destiny 2 maker.

“My heart is breaking for all affected…I am now looking for opportunities,” tweeted Destiny 2 community manager Liana Ruppert. “It’s a strange feeling to wake up in the morning excited for the week ahead, only for your day to begin learning that you’ve been hit with a Reduction in Force and are now on the job hunt,” wrote recruiting lead Amanda R. on LinkedIn.

The scale of the cuts and which teams or departments are most impacted isn’t yet clear. They come the same month that fellow PlayStation studio, Naughty Dog, cut dozens of contractors across art, production, quality assurance, and other disciplines. The downsizing comes in a year that’s seen publishers like Electronic Arts, Ubisoft, Take-Two, and Embracer all lay off hundreds, consolidated teams, or closed entire studios. PlayStation rival Microsoft has imposed severe cuts at current first-party Halo studio 343 Industries near the beginning of 2023.

Sony acquired Bungie for $3.6 billion just last year amid an acquisition frenzy across the video game industry. In addition to the popular sci-fi MMO shooter Destiny 2, Bungie is also working on the extraction shooter Marathon as well as another original IP. Bloomberg also previously reported that the studio was involved in an internal evaluation of Naughty Dog’s The Last of Us 2 multiplayer spin-off that stopped the project in its tracks. Kotaku reported earlier this month that the game, while not fully cancelled, had effectively been put on ice.

Sony and Bungie did not immediately respond to requests for comment.

Update 10/30/2023: Bungie CEO Pete Parsons called today a “sad day” on Twitter. “What these exceptional individuals have contributed to our games and Bungie culture has been enormous and will continue to be a part of Bungie long into the future,” he wrote.

                

Bungie Blames 100 Layoffs On Players Leaving Destiny 2

Destiny 2 Guardians prepare for The Final Shape.

Image: Bungie

Bungie employees knew the Destiny 2 studio was struggling, but might not have expected a recent mass layoff of roughly 100 staff. That’s according to a new report by Bloomberg which details a meeting earlier this month in which studio leadership blamed poor player retention following 2023’s disappointing Lightfall expansion for revenue going off a cliff.

The money Bungie was bringing in was reportedly running 45 percent below projections for the year. Despite an initial spike in concurrent players on Steam, Destiny 2 has struggled in the weeks and months following the release of its cyberpunk-infused Lightfall expansion. Bloomberg reports that The Final Shape, which Bungie has been hyping up as the climactic conclusion for Destiny 2‘s current storyline, was getting good but not great feedback internally. As a result, the decision was made to delay it from February 2024 to June in order to try to win back players. (Extraction shooter Marathon was delayed as well, to 2025.)

Read More: Destiny 2 Fans Worry About The Future After Cuts And Delays

In the meantime, Bungie ultimately decided to lay off roughly 100 employees, or about 8 percent of its 1,200 headcount, Bloomberg reports. As first shared by Forbes writer Paul Tassi earlier today, employees are receiving three months of severance and health insurance, while other benefits run out on November 1. And while bonuses will be prorated for the year, those with shares from the 2022 Sony acquisition that haven’t yet vested will lose them. Sony, for its part, also appears to be cutting costs across its studios.

“Today is a sad day at Bungie as we say goodbye to colleagues who have all made a significant impact on our studio,” Bungie CEO Pete Parsons wrote on Twitter on October 30 after the news broke. “What these exceptional individuals have contributed to our games and Bungie culture has been enormous and will continue to be a part of Bungie long into the future.”

The tweet has since been ratioed, with some commenters calling the remarks “tone deaf” and asking the executive whether he had taken a pay cut before deciding who to lay off. Bungie has so far declined to comment on the situation.