Bungie Plans Layoffs Following Destiny 2 Development Halt

Sony Group Corp.’s Bungie studio is bracing for a major round of layoffs as it prepares to halt development on Destiny 2, the flagship online shooter that has defined the company for nearly a decade. According to individuals familiar with the matter, the restructuring comes as the game’s content cycle reaches its final chapter next month, with no immediate plans for a successor.

The team currently working on Destiny 2 will have no new project to transition to once the current season concludes, the sources said, requesting anonymity because they were not authorized to speak publicly. Bungie has no intention of rushing into production on a Destiny 3 in the near term, they added. The exact number of employees affected by the cuts remains unclear.

This marks a significant pivot for the studio, which has relied on the Destiny franchise as its primary revenue driver since breaking away from Activision Blizzard in 2019. The decision to sunset the game without a direct replacement raises questions about Bungie’s long-term strategy under Sony’s ownership. Sony acquired Bungie for $3.6 billion in 2022, betting on the studio’s live-service expertise to bolster its own gaming portfolio. However, recent industry headwinds, including a slowdown in player spending and rising development costs, have forced difficult choices across the sector.

For the thousands of dedicated Destiny 2 players, the end of new content marks the conclusion of an era, while for Bungie’s workforce, it signals an uncertain future. The studio has not publicly commented on the reported layoffs or its roadmap beyond the imminent finale.