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Bungie has announced layoffs affecting 220 employees. In a blog post, Bungie CEO Pete Parsons cites “rising costs of development and industry shifts as well as enduring economic conditions” as the primary factor while revealing some dramatic changes for the company going forward.
These layoffs represent 17 percent of the studio’s workforce and affect every department of the company, with executive and senior leadership roles impacted most. Parsons states that departing employees will receive a “generous” exit package that includes severance, bonus, and health coverage. Bungie also plans to hold employee town halls, along with team and private individual meetings over the coming weeks, to help sort out the next steps. 850 employees remain following the layoffs.
“I realize all of this is hard news, especially following the success we have seen with The Final Shape,” Parsons writes. “But as we’ve navigated the broader economic realities over the last year, and after exhausting all other mitigation options, this has become a necessary decision to refocus our studio and our business with more realistic goals and viable financials.”
Parsons also reveals plans to further integrate Bungie into Sony Interactive Entertainment (SIE), which acquired the studio in 2022, to leverage its strengths. Firstly, Bungie is working to integrate 155 roles (12 percent of its staff) into SIE over the next few quarters. Bungie states this has allowed it to save additional talent that would have otherwise been affected by today’s layoffs.
Second, Bungie is working with PlayStation Studios to form a new, separate in-house studio that will continue developing one of its incubation projects. Bungie describes this title as, “an action game set in a brand-new science-fantasy universe.”
Parsons then elaborates on how Bungie found itself in this difficult position. He explains that the team’s goal was to ship games in “three enduring, global franchises” and set up several incubation projects to achieve this aim. However, Bungie found itself stretched thin too quickly. This forced its support structures to grow larger than it could feasibly support, especially given the ongoing development of two big titles in Destiny 2 and the upcoming Marathon.
Destiny 2: The Final Shape
Parsons also cites this rapid expansion collided with a broader economic slowdown, the sharp downturn games industry, the mixed reception to Destiny 2: Lightfall, and the need to give the recently released The Final Shape expansion for Destiny 2 (which garnered critical acclaim) and Marathon more development time to ensure a high quality. “We were overly ambitious, our financial safety margins were subsequently exceeded, and we began running in the red,” Parsons states.
“After this new trajectory became clear, we knew we had to change our course and speed, and we did everything we could to avoid today’s outcome,” Parsons writes. “Even with exhaustive efforts undertaken across our leadership and product teams to resolve our financial challenges, these steps were simply not enough.”
Today’s layoffs come roughly eight months after the studio cut 100 staffers last October, and the second since it was acquired by Sony. It represents another wave of game industry job cuts that have run rampant since last year, and hopefully the affected staff can land on their feet sooner than later.