Bungie Layoffs: Nearly 300 Staff Cut in Bellevue Headquarters

The layoffs Bungie announced yesterday hit nearly 300 staff who worked at the developer’s Bellevue, Washington office, official records have revealed.

A Worker Adjustment and Retraining Notification (WARN) notice issued by Sony to the Washington State Employment Security Department has disclosed that 292 staff members are being let go with a formal separation date set for July 9. This figure does not include Bungie employees outside of Washington state. The studio had around 850 staff members as of 2024, but the current number post-layoffs remains undisclosed.

This marks Bungie's third round of layoffs in three years, with previous reports indicating that the studio once had 1,000 employees in Bellevue. The recent cuts have affected various departments within the company, including artists, engineers, producers, and support teams. Former staff members have taken to social media to confirm the layoffs, with speculations arising about key figures within the studio.

Sony Interactive Entertainment's CEO, Hermen Hulst, described the decision as necessary to realign resources with the studio’s priorities and long-term goals. The layoffs come following the cessation of new content for Destiny 2 and the challenges faced by the recently released game, Marathon. Bungie's financial struggles have been ongoing, with Sony reporting a significant impairment loss linked to Bungie's performance.

Destiny 2's issues reportedly began with underperforming expansions, leading to discussions about the franchise's future. Plans for a potential relaunch as 'Destiny Infinity' were abandoned due to perceived risks and costs, particularly in light of ongoing support for Marathon. The fate of Destiny 3 remains uncertain, with production costs cited as a major concern.

Since parting ways with Activision, Bungie has faced financial difficulties despite self-publishing Destiny. The studio's latest release, Marathon, has also struggled to meet expectations. The layoffs and financial challenges underscore a turbulent period for the renowned game developer.