Destiny developer Bungie lays off 220 employees - major changes ahead

In a significant shake-up, Bungie, the developer behind Destiny, has announced layoffs affecting 220 employees, amounting to roughly 17% of its workforce. The cuts impact all levels, including senior leadership, with Bungie CEO Pete Parsons citing rising development costs, industry shifts, and enduring economic conditions as reasons. Despite the recent success of Destiny 2's The Final Shape expansion, these measures were deemed necessary to "refocus the studio and business." Alongside the layoffs, an additional 155 roles will be integrated into Sony Interactive Entertainment, potentially mitigating a larger reduction in workforce. Additionally, Bungie plans to spin out a new studio for an action game set in a new sci-fi universe, with around 75 staff transitioning to this new venture. The total estimated workforce reduction is about 34%. The news follows earlier layoffs and delays to projects like Marathon, signaling ongoing financial and operational challenges for Bungie.

Bungie's CEO Pete Parsons explained that the layoffs were necessary due to rising development costs, industry shifts, and enduring economic conditions. These factors outweighed the financial benefits from The Final Shape's success, necessitating workforce reductions to refocus and maintain realistic financial goals.

Since its release in 2017, Destiny 2 has undergone several expansions and updates, significantly shaping its universe and gameplay mechanics. The game is praised for its cooperative multiplayer elements and rich storytelling. Despite its success, the game and its developer, Bungie, have faced challenges, including underperformance in 2022 and previous layoffs. Bungie was acquired by Sony in mid-2022, which has provided some stability but hasn't completely alleviated financial pressures.