Bungie is entering one of the most difficult chapters in its history following the end of major content updates for Destiny 2. After eight years of live-service support, the studio delivered its final major update for the game, Monument of Triumph, on June 9, 2026. Only weeks later, Sony confirmed a major restructuring that has resulted in significant layoffs across the Bellevue-based developer.
The decision was announced internally by Hermen Hulst and later shared publicly by Sony Interactive Entertainment. According to the memo, the cuts affect a large number of Bungie employees, including most of the Destiny development team and some staff working on Marathon. A Worker Adjustment and Retraining Notification filed in Washington State indicates that 292 positions are impacted, with employee separations expected to begin by July 9.
Reports surrounding the restructuring suggest Bungie’s total workforce has been reduced by roughly half. The scale of the cuts marks one of the most dramatic shake-ups at the studio since Sony acquired Bungie for $3.6 billion in 2022.
In the memo, Hulst said the decision came after months of review involving Bungie leadership and Sony’s broader studio strategy. He described the layoffs as painful, particularly because they affect many talented developers whose roles have now been eliminated.
Hulst explained that Sony and Bungie had spent several months evaluating the studio’s long-term direction, development priorities, resource needs, and its place within Sony’s portfolio. The result of that review was a decision to reduce the studio’s size as Bungie prepares for a future beyond Destiny 2’s regular major updates.
Bungie also addressed the layoffs in a separate public statement, acknowledging that Destiny had fallen short of expectations in recent years. The studio added that its future projects remain in early incubation, making it impossible to continue operating with the same workforce size.
The timing of the layoffs is especially significant for longtime Destiny fans. Destiny 2 has been one of the most recognizable live-service games in the industry, building a dedicated player base through expansions, seasonal content, raids, and ongoing world-building. Monument of Triumph now stands as the final major live-service update for a game that helped define Bungie’s post-Halo era.
While Destiny 2 is not disappearing, the end of major content updates signals a major shift for the franchise. Bungie’s reduced workforce raises questions about how the studio will support the game going forward and what role Destiny will play in its future plans.
The restructuring also affects Marathon, Bungie’s upcoming extraction shooter. Although the cuts appear to have hit the Destiny team hardest, some Marathon developers are also included in the layoffs. Marathon has been positioned as Bungie’s next major project, but the impact of the workforce reduction on its development timeline remains unclear.
Leadership changes are also reportedly underway. Justin Truman, who became studio head after Pete Parsons stepped down, is said to be leaving the role less than a year after taking it. Poria Torkan, formerly Bungie’s vice president of operations, is expected to step in as his replacement.
Sony is offering transitional support for affected employees, including assistance in finding roles across its wider network of studios. Even so, the scale of the layoffs reflects the growing pressure facing game developers, especially those working on expensive live-service projects that require constant updates, large teams, and long-term player engagement.
Bungie’s situation highlights a wider industry trend. In recent years, many major studios have faced restructuring, project cancellations, and staff reductions as publishers reassess costs and development priorities. Live-service games can generate huge success when they maintain momentum, but they also carry major risks when player engagement declines or future projects take longer than expected to mature.
For Bungie, the road ahead now looks very different. Destiny 2 has reached the end of its major update cycle, Marathon remains in development, and the studio is being reshaped under Sony’s oversight. For fans, the moment is bittersweet: Destiny 2 leaves behind a massive legacy, but the people who helped build that legacy are now facing an uncertain future.
The layoffs mark not only the end of an era for Destiny 2 but also a turning point for Bungie itself. What comes next will determine whether the studio can successfully reinvent itself once again.
