Bungie is undergoing a major restructuring as it deepens its ties with Sony and confronts the challenges of rising development costs and industry shifts. The company announced on Wednesday that it is laying off 220 employees, representing roughly 17% of its workforce, across all levels. CEO Pete Parsons described this as a “difficult and painful day,” citing the company’s rapid expansion in recent years, including during the pandemic, which negatively impacted development on multiple incubation projects, its upcoming extraction shooter Marathon, and ongoing support for Destiny 2. Parsons stated that all laid-off employees will receive severance pay, a bonus, and continued health insurance. This news coincides with Bungie’s increasing integration with its parent company, Sony Interactive Entertainment. As part of the downsizing, 155 roles, or 12% of Bungie’s workforce, will be directly integrated into SIE. Simultaneously, Bungie is establishing a new studio within PlayStation Studios dedicated to developing an original action game set in a novel sci-fi and fantasy universe. It remains unclear if this is one of the three major projects Bungie was previously developing. Sony acquired Bungie in 2022 for $3.6 billion, aiming to maintain the studio’s independence while expanding its presence in the live service gaming market. Bungie has faced challenges in recent years, having laid off around 100 employees in November 2023, partly attributed to declining Destiny 2 sales. This led to project delays, including the most recent expansion, The Final Shape, which encountered significant issues like skipped cutscenes and server problems upon its release in June.
Bungie Layoffs and Integration with Sony: A Shift in Strategy
