Sony files layoff notice for Bellevue video game studio

Sony Interactive Entertainment is cutting roughly 292 jobs at Bungie’s Bellevue facility, a move that will permanently eliminate positions across the studio’s core teams and supporting operations. The layoffs, disclosed in a Worker Adjustment and Retraining Notification (WARN) notice filed with the Washington State Department of Employment, primarily affect the Destiny team, along with some members of the Marathon team and employees within Sony Interactive Entertainment units that support Bungie’s work.

Employees received notification on Thursday and are expected to leave the company on July 9. The filing confirms the layoffs are permanent, and those affected will receive a combination of notice and pay totaling 60 days. None of the impacted workers are unionized.

In an internal email to staff, Hermen Hulst, CEO of Sony Interactive Entertainment’s Studio Business Group, confirmed the decision. “We have made the decision to reduce Bungie’s workforce, affecting a significant number of employees, including most of the Destiny team and some Marathon team members,” Hulst wrote. He explained that the move followed months of discussions between Sony Interactive Entertainment and Bungie leadership about the studio’s long-term direction, development priorities, resource needs, and its role within Sony’s broader portfolio strategy.

“We explored multiple alternatives before concluding that a reduction was necessary to align the studio’s resources with its current priorities and long-term goals,” Hulst added, describing the news as “painful,” particularly for those whose positions were eliminated.

The restructuring comes as Bungie begins what Hulst called “a new journey” following the release of Destiny 2’s final live-service content update. He praised the franchise’s decade-long run, noting it had “left a lasting mark on players and the industry,” and thanked employees who contributed to its success.

Despite the cuts, Hulst emphasized that Marathon remains a key part of Sony Interactive Entertainment’s portfolio. The company will continue supporting the team as it builds on the foundation established in Seasons 1 and 2, while also pursuing future incubation projects. “While it’s too early to discuss, we are encouraged by the creativity and opportunities that lie ahead,” he wrote.

Hulst said the company’s immediate priority is supporting affected employees through the transition by providing transition assistance and, where possible, identifying opportunities elsewhere within Sony Interactive Entertainment and its global network of studios. He closed by thanking those impacted for their “hard work, creativity, and contributions to Bungie, SIE, and the broader gaming community,” and encouraged remaining employees to support one another as they process the news.