SIE and Bungie Lay Off Most of Destiny Team and Part of Marathon Team
The layoffs mark the end of an era for the studio that defined the live-service shooter genre for over a decade, as SIE pivots resources toward the newer Marathon while winding down the Destiny franchise that made Bungie a household name.
Key Facts
- Bungie laid off 292 employees at its Bellevue, Washington headquarters on June 25, 2026, as part of an organizational restructuring by Sony Interactive Entertainment.
- The layoffs target most of the Destiny development team and part of the Marathon team, along with SIE staff who support Bungie's operations.
- Destiny 2 concluded development with a final update on June 9, 2026, and Bungie said the game has not met expectations in recent years.
- Marathon, which launched in March 2026, will continue to receive support and is considered an important part of the SIE portfolio.
- This is the third round of layoffs at Bungie in the past five years; previous cuts led to SIE integrating 155 Bungie staff into PlayStation Studios and creating a new studio, teamLFG.
Reporting from 6 sources: 4Gamer.net, Denfaminicogamer, Automaton, GameBusiness.jp, and 2 more.
Sony Interactive Entertainment and its subsidiary Bungie announced on June 25, 2026, that they are conducting layoffs as part of an organizational restructuring. The reductions target most of the Destiny development team, part of the Marathon team, and SIE staff who support Bungie's operations. In a statement, Bungie said that Destiny 2 has not met expectations in recent years and that the current development structure cannot sustain future plans. The announcement follows the end of Destiny 2's development, which concluded with a final update on June 9, 2026. SIE CEO of the Studio Business Group Hermen Hulst explained in an internal email that the decision came after several months of review with Bungie's management regarding long-term direction, development priorities, and the studio's role in the broader portfolio. He added that multiple alternatives were considered before concluding that reductions were necessary. Marathon, which launched in March 2026, remains an important part of the SIE portfolio and will continue to receive support. Affected employees will receive severance, career transition assistance, and where possible, opportunities within SIE's global studio network. This is the third round of layoffs at Bungie in the past five years.
Bungie's total headcount was 850 employees as of April 2026, with roughly 300 working on Marathon and 550 on Destiny 2, though the Marathon team had been growing relative to Destiny over time. According to documents submitted by SIE, 292 people at the Bellevue, Washington headquarters are expected to be laid off.
Hermen Hulst, CEO of SIE's Studio Business Group, said in an internal email that the decision came after "several months of review with Bungie's management regarding long-term direction, development priorities, resource needs, and role within the broader portfolio strategy." He called Destiny's 10-year run "truly remarkable" and expressed pride in the team's work. For Marathon, Hulst said it is "an important pillar of the SIE portfolio" and that the team will continue building on the foundation of Seasons 1 and 2. He added that incubation for future projects is underway: "It's not yet time to share details, but I am encouraged by the creativity and opportunities ahead."
This is the third round of layoffs at Bungie in five years. During previous cuts, SIE integrated 155 affected Bungie staff into the company and established a new studio, teamLFG, within PlayStation Studios, primarily composed of former Bungie employees. The Destiny 2 player base on Steam had been declining since the Final Shape expansion in June 2024, though the final update on June 9, 2026, briefly pushed concurrent players to roughly 170,000 on June 10. Marathon is scheduled to deliver new content at least through the end of 2026.
Synthesized by Yomimono from the 6 cited sources below, including Japanese-language reporting where cited, then editorially reviewed before publishing.
Sources
- 4Gamer.net Bungieが組織再編に伴う人員削減を発表。「Destiny」チームの大半，「Marathon」チームの一部などが対象
- Denfaminicogamer SIE、傘下のスタジオBungieで人員削減の実施を発表。『Destiny』開発チームの大部分や『Marathon』チームの一部などが対象に
- Automaton 『Desitny 2』開発を終えたSIE傘下Bungieで早くも大規模レイオフ。“『Destiny』開発チームの大半”が削減対象に
- GameBusiness.jp SIE、Bungieの大規模人員削減を発表―『Destiny』チームの大半と『Marathon』チームの一部が対象
- GIGAZINE 「Destiny 2」の開発を終えたBungieのチームが解雇される、多数の従業員に影響
- Game Spark ホワイトハウス、『Destiny 2』風のトランプ大統領画像をXに投稿。開発元Bungieがレイオフに揺れる中で