Sony confirmed a sweeping layoff at Bungie, cutting a significant portion of the Destiny franchise team shortly after the final Destiny 2 content update. The move also affected a handful of Marathon developers, though that title will continue receiving updates. Sony said it explored alternatives before deciding the reduction was needed to match current priorities. The cuts also raise worries about live‑service support for future.

The layoffs follow Bloomberg’s May report that Bungie was not working on Destiny 3, hinting at a strategic shift. Sony acquired Bungie in 2022 for a reported $3.6 billion, but recent valuations place the studio around $2.8 billion, implying a loss exceeding $700 million. Disappointing sales and user engagement on Destiny 2 drove the reassessment. The shortfall forced Sony to tighten budgets across its studios.

Studio head Justin Truman resigned amid the cuts, and Sony’s broader gaming division saw reductions that reached senior staff supporting Destiny and Marathon. Remaining Bungie employees will focus on Marathon and “incubation” projects, signaling a pivot away from the live‑service model that defined Destiny 2. Analysts view this as Sony prioritizing profitability over experimental titles. The layoffs tighten Sony’s control over Bungie’s pipeline and financial outlook.