Bungie has announced layoffs affecting 220 employees, citing rising development costs and economic conditions, CEO Pete Parsons shared on the studio’s website. This reduction represents 17% of Bungie’s workforce. Additionally, 155 employees will be integrated into other Sony Interactive Entertainment departments. Combined with 100 layoffs last October, Bungie has lost about 40% of its workforce in the past year.
Bungie, which had around 1,200 employees last year, recently laid off 100 people due to a delay in the Destiny 2: The Final Shape expansion. The company is now working on a new game, an action sci-fi fantasy, which will form a new studio within PlayStation Studios.
Parsons explained that rapid growth spread the leadership team too thin, affecting the quality of projects like Destiny 2’s Lightfall expansion and delaying the next game, Marathon. Despite the layoffs, Bungie will continue to focus on Destiny 2 and Marathon, with over 850 team members remaining.