Bungie announces around 400 layoffs as it acknowledges Destiny 2 "fell short of expectations"

Bungie has confirmed a significant reduction in its workforce following the end of Destiny 2 development, with the studio admitting its flagship franchise underperformed in its final years.

The details:

• Bungie announced the layoffs today, framing them as a reorganisation following the conclusion of Destiny 2's final content update, Monument of Triumph, which went live on June 9. Roughly 400 staff are expected to be affected, approximately 50% of the studio's total workforce, including most of the Destiny 2 team and some members of the Marathon team.
• In a statement posted to social media, the studio said: "We recognise 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."
• Sony Interactive Entertainment CEO Hermen Hulst confirmed the cuts extend beyond Bungie itself, with reductions also taking place across SIE support teams connected to the studio.
• This is the third wave of layoffs at Bungie since Sony acquired the studio for $3.6 billion. Sony had already reported a $765 million impairment loss on Bungie assets following Marathon's underperformance.
• Bungie has no plans to immediately begin production on Destiny 3. The studio's next projects are described as being in "early incubation," with Marathon remaining the primary focus going forward.