Sony Interactive Entertainment (SIE) is reducing its workforce at Bungie, impacting a significant portion of the Destiny development team and select staff working on Marathon. Hermen Hulst, CEO of Studio Business Group, Sony Interactive Entertainment, confirmed the layoffs in an internal memo, citing a need to align studio resources with long-term strategic priorities after a review of the developer’s operations.
Why is Sony downsizing Bungie?
According to the internal memo from Hermen Hulst, the decision follows a multi-month review of Bungie’s development priorities and resource needs. Sony leadership concluded that a reduction of the workforce was necessary to align the studio’s resources with its current priorities and long-term goals. This move follows the conclusion of a major content cycle for Destiny 2, which Hulst described as the start of a “new chapter” for the studio.
What is the status of the Marathon project?
Despite the layoffs, Marathon remains an important part of Sony’s portfolio. Hulst stated that SIE will continue to support the development team as they build upon the foundations established during Seasons 1 and 2, and as they work on incubation projects for the future.

How does this compare to previous industry trends?
The workforce reduction at Bungie mirrors a broader trend across the gaming industry, where major publishers have moved to correct over-expansion following the pandemic-era boom. In 2023 and 2024, companies including Microsoft, Electronic Arts, and Unity Technologies also executed significant layoffs to streamline operations. Unlike some studios that shuttered entirely, Sony’s approach appears to be a targeted reduction designed to preserve the viability of existing franchises like Marathon while scaling back support for older live-service models.
| Studio Focus | Strategy |
|---|---|
| Destiny | Transitioning to a new chapter; reduced staff. |
| Marathon | Continued support and incubation. |
How is Sony supporting displaced employees?
Hulst noted that SIE is providing transition support for those affected by the cuts. The company is actively attempting to identify opportunities for impacted employees within SIE and its global network of studios.
Frequently Asked Questions
Will Destiny 2 continue to receive updates?
Yes. The memo indicates a transition to a new chapter for the franchise, but does not suggest the cessation of support for the title.
Are all Bungie teams affected?
The layoffs specifically targeted the Destiny team and some members of the Marathon team, as well as SIE staff who support Bungie’s operations.
Is this the end of Bungie under Sony?
No. Hermen Hulst emphasized that Bungie remains a key part of the Studio Business Group’s strategy, with ongoing work on both existing games and future incubation projects.
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