Bungie, the renowned gaming company behind popular titles like Halo, Destiny, and Marathon, has recently made headlines with its second round of layoffs, resulting in a 17% reduction in its workforce. The decision came as a surprise to many, including former employees who were caught off guard by the workforce reduction. These individuals reported that management had indicated in team meetings that the company was performing well, with the recently released Destiny 2: The Final Shape exceeding internal projections.
Tzivi Sherman, a sound designer at Bungie, shared his experience of learning about the layoffs through Bungie’s corporate Twitter account. Shortly after, he received an email with an ominous meeting request, confirming the impact on his role. Sherman, who had been anticipating further layoffs since the previous round in October, expressed a sense of betrayal, feeling that upper management had been deceptive in their communication.
According to both former employees, Sony’s acquisition of Bungie in 2022 triggered a cultural shift within the game studio. However, in recent months, Sony and Bungie pushed for a more active integration of the two companies, leading to increased uncertainty among employees.
These layoffs are not isolated incidents in the gaming industry. In fact, massive workforce reductions have become increasingly common, especially following major acquisitions. In 2024 alone, it is estimated that over 8,800 video game industry workers have been let go. While investors remain interested in the lucrative gaming industry, the developers responsible for building the technology have not been as fortunate.
Bungie CEO Pete Parsons addressed the recent layoffs in a press release, stating that they were a necessary decision to refocus the studio. Parsons emphasized the integration efforts with Sony, aiming to integrate 155 employees to minimize further layoffs. Additionally, the press release revealed that Bungie is working on a new game, with plans to spin out one of its incubation projects into a new studio within Playstation Studios. The CEO described the upcoming game as “an action game set in a brand-new science-fantasy universe.”
It is worth noting that these recent layoffs add to the October 2023 layoff of 100 Bungie employees, which also resulted in the delay of two game releases. Despite these challenges, Parsons assured that the company still has a team of over 850 members dedicated to the development of Destiny and Marathon.
As of now, Bungie has not responded to requests for comment, leaving many questioning the future of the company and the impact these layoffs will have on its projects and employees.