Bungie Cuts 292 Jobs After Destiny 2’s Final Update as Marathon Becomes Its Main Active Game
Bungie has announced another major round of layoffs only 16 days after releasing the final live service content update for Destiny 2. The PlayStation owned studio said it could no longer maintain its previous workforce after Destiny 2 fell short of expectations and its future projects remained in the early incubation stage. Sony Interactive Entertainment later confirmed that the reduction affects most of the Destiny team, some Marathon developers, and employees across PlayStation teams that supported Bungie’s operations.
"As leaders of Bungie, past and present, we recognize Destiny 2 fell short of expectations these past several years."
— Bungie
— Bungie (@Bungie) June 25, 2026
Bungie did not disclose the total number of affected employees in its official statement, but a Washington state WARN filing records 292 positions affected at the studio’s Bellevue headquarters. That figure may not represent the complete impact because Sony also confirmed reductions within PlayStation teams that supported Bungie. Bloomberg journalist Jason Schreier reported through Bluesky that the cuts include most of the Destiny team, members of the Marathon team, and several Sony employees assigned to Bungie related work.
Today's layoffs include most of the Destiny team, some people on the Marathon team, and even various Sony staff who supported Bungie, according to people familiar with the situation.
— Jason Schreier (@jasonschreier.bsky.social) June 25, 2026 at 10:34 PM
Destiny 2 received its final live service update, Monument of Triumph, on June 9, 2026. Bungie had previously explained through its Every End is a New Beginning announcement that active development would conclude while the game remained playable for returning players. The update celebrated achievements from across Destiny 2 and introduced rewards intended to preserve a final progression path, but it also marked the end of regular expansions, seasons, and major content support for a game Bungie had maintained since 2017.
"We unfortunately could not continue operating at our previous size."
— Bungie
The layoffs were widely anticipated after reports emerged that no Destiny sequel was ready to absorb developers leaving Destiny 2. Schreier previously reported that Destiny 3 was not in active production, although Bungie employees were exploring and pitching new ideas. Incubation does not guarantee that any project will enter full development, leaving Marathon as Bungie’s only currently active commercial title and its most immediate opportunity to establish a sustainable future.
Sony Studio Business Group chief executive officer Hermen Hulst said the company and Bungie reviewed multiple alternatives before deciding that the reduction was necessary. He praised the impact Destiny has had across the gaming industry and said Sony would assist affected employees where possible by identifying positions across PlayStation and its global studio network. However, the cuts represent another major contraction for Bungie following earlier layoffs in 2023 and 2024, along with the gradual integration of several teams into Sony Interactive Entertainment.
"Marathon remains an important part of our portfolio."
— Hermen Hulst
Sony says it will continue supporting Marathon as Bungie develops future seasons and explores additional projects. However, the extraction shooter has not yet demonstrated that it can commercially replace Destiny. SteamDB recorded an all time peak of 88,337 concurrent players at launch, but the visible PC population has since fallen substantially. Steam does not represent the complete PlayStation and Xbox audience, although the decline illustrates the pressure facing a large live service production that requires regular content, continued marketing, and a stable community.
Bungie is attempting to improve that position through Season 2 and the upcoming Vault Breaker mode, allowing solo players, duos, and full crews to explore Cryo Archive without facing rival players. The mode could broaden Marathon’s audience, but the layoffs affecting part of its development team raise questions about how quickly Bungie can produce the updates required to retain players.
The layoffs are the clearest indication yet that Bungie’s transition away from Destiny 2 was not supported by a replacement project ready for full production. Ending a decade long content operation without a Destiny sequel or another major game positioned to absorb its team created a workforce structure that Sony and Bungie were unwilling to maintain.
Marathon now carries enormous responsibility, but expecting one extraction shooter to replace Destiny’s community, revenue, and cultural position is a difficult strategy. Bungie can continue improving Marathon, and Vault Breaker may attract players who prefer PvE, but the game must prove it can retain a large enough audience to support continued development.
The greatest loss is the experienced workforce behind Destiny. These developers built one of the most influential live service shooters in gaming, and reducing most of that team before a successor is ready risks losing institutional knowledge that would be difficult to rebuild. Bungie says future projects remain in incubation, but the studio’s next chapter will begin with fewer people, greater pressure, and much less room for another commercial disappointment.
Should Bungie return to Destiny with a full sequel, or should the reduced studio concentrate its remaining resources on rebuilding Marathon?
