Sony confirmed in a studio blog that Bungie will cut a significant number of employees after the end of Destiny 2’s live service. The announcement follows speculation that the flagship looter‑shooter would shut down without a sequel. The layoffs will hit most of the Destiny team and stretch into the new extraction title, Marathon.

While the exact headcount remains unclear, Sony said the cutbacks extend beyond Bungie to support teams inside Sony Interactive Entertainment. The move comes after a review of the studio’s long‑term direction, development priorities, and resource needs. Sony explored alternatives before deciding layoffs were the only path to align Bungie with its portfolio strategy.

Industry observers link the layoffs to Marathon’s underwhelming performance. The extraction shooter has struggled to meet sales expectations, prompting frantic updates based on player feedback. Bungie’s leadership credits the decision as a necessary realignment, noting that the studio will focus on the foundations laid in Seasons 1 and 2 while seeking future projects.

These cuts signal a broader shift in Sony’s approach to third‑party studios. Employees already receive transition support, and Sony promises to explore opportunities across its global network. For gamers, the change means fewer resources for Destiny 2 updates and a pivot toward new IPs that better fit Sony’s current strategy.