Most of Destiny 2 team laid off despite massive player count spike

The studio behind Marathon and Halo is hit with mass layoffs

Just weeks after Destiny 2 received its final content update on June 9, Bungie announced Thursday that the studio is undergoing a significant "reduction in force." A post shared by the studio on social media notes that, without continued development on its iconic live-service game — and its next projects still in flux — Bungie "could not continue operating at our previous size."

"With great sadness, we are announcing a reduction in force as we reorganize Bungie," the studio said on its official X account. "As the leaders of Bungie, past and present, we recognize Destiny 2 fell short of expectations these past several years. Following our final content update to Destiny 2, and with our future projects still in early incubation, we unfortunately could not continue operating at our previous size."

Bungie is estimated to have had 800 employees as of April.

In a separate statement, PlayStation studio business group CEO Hermen Hulst said that "a significant number of employees, including most of the Destiny team and some Marathon team members" are being laid off. "There are also reductions across SIE teams that support Bungie’s operations," Hulst said. "Those impacted at Bungie and within SIE are being informed today."

Hulst's internal memo says that Sony attempted to find alternatives before resorting to layoffs. News of impending layoffs at Bungie had been rumored since May, but the scope of the cutbacks was unknown until late June.

"Marathon remains an important part of our portfolio, and we will continue to support the team as they build on the strong foundation established in Season 1 and 2, and as they work on incubation efforts for future projects," Hulst said. "While it’s too early to discuss, we are encouraged by the creativity and opportunities that lie ahead."

Although active development on Destiny 2 has officially ended, some updates are planned for June 30. Based on posts by the Destiny development team on social media, it's possible that hotfix might be the last patch the sci-fi shooter ever gets, period.

Destiny 3 does not seem to be in the cards for Bungie, but the studio is said to be in the early stages of pitching potential new projects that could take place in the Destiny universe. The live shooter's shutdown, alongside the massive layoffs, is happening two years after Sony purchased the studio for $3.6 billion. Earlier this year, Sony blamed a $565 million impairment loss on Bungie's unsuccessful development of Destiny 2 and Marathon.

Shortly after Bungie revealed that active development on its cornerstone franchise would cease, fans rallied around the game. For a couple of weeks now, Destiny 2 has seen a consistent turnout of about 100,000 active players. While some of that resurgence of interest can be chalked up to the game's final update, fans say that Bungie actually smoothed out many of the game's rough edges. Activities like raids and dungeons, for example, all give out worthwhile gear now.

"We know that this decision has a profound impact on the people affected, their families, friends, and teammates," Bungie said in a statement. "While these changes are necessary to best position the studio now and for the future, that does not lessen the difficulty of this moment or the impact it has on those affected."