Bungie, the renowned game developer behind popular franchises like Destiny, has announced layoffs affecting 220 employees, which accounts for about 17% of its workforce. This comes after a previous round of layoffs in October 2023, where around 100 people were let go. The company has also revealed plans to spin off development for a new game into a new studio in partnership with Sony Interactive Entertainment.
In an announcement post, Bungie CEO Pete Parsons explained the reasons behind the layoffs. He mentioned how the team had stretched themselves thin trying to deliver games for three enduring, global franchises. Additionally, economic issues in 2023 and the failure of Destiny 2: Lightfall had a significant impact on the company’s financial situation. Parsons admitted that they had been overly ambitious, exceeding their financial safety margins and operating at a loss.
However, amidst the layoffs, there is a glimmer of hope for affected employees. PlayStation Studios will be integrating 155 roles from Bungie into its own ranks, finding them new positions within the company. This collaboration between Bungie and Sony showcases the industry’s efforts to support and retain talent even in challenging times.
The announcement also sheds light on Bungie’s plans for the future. They are working on a new game, an action title set in a new sci-fi universe. This project will be developed in collaboration with Sony and will have its own dedicated studio. This move shows Bungie’s determination to continue creating innovative and captivating gaming experiences despite the setbacks they have faced.
Parsons emphasized that the decision to lay off employees was not taken lightly. The company made exhaustive efforts to avoid this outcome, but ultimately, it was necessary to change course and address their financial challenges. The layoffs will impact every level of the company, including executive and senior leadership roles. Some of the affected employees have already shared their experiences on social media, giving insight into the departments affected, such as player support, creative, and communications.
These recent developments highlight the realities of the gaming industry, where even successful companies face hurdles and have to make difficult decisions. However, collaborations like the one between Bungie and Sony, as well as the efforts to find new positions for affected employees, demonstrate the resilience of the industry and its commitment to supporting its workforce. As gamers, we can look forward to the future projects and games that will continue to captivate and entertain us, thanks to the dedication and passion of companies like Bungie.