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Bungie Hit by Major Layoffs — Most of Destiny Team Cut, Studio Head Steps Down

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Sony confirmed major layoffs at Bungie on June 25. A Washington State filing puts the count at 292 full-time staff, and studio head Justin Truman has stepped down. Most of the Destiny team was hit just after Destiny 2's final update, leaving Marathon as the studio's only active project.

Bungie Hit by Major Layoffs — Most of Destiny Team Cut, Studio Head Steps Down

Bungie Cuts Again — This Time, the Destiny Team

On June 25, 2026, Sony Interactive Entertainment confirmed a heavy round of layoffs at Bungie. A WARN filing with the State of Washington puts the figure at 292 full-time staff — more than a third of a workforce of roughly 850.

Sony said the cuts hit most of the Destiny team, part of the Marathon team, and SIE staff who supported Bungie's operations. The real footprint, in other words, is larger than the 292 full-time number alone.

The Essentials

ItemDetail
AnnouncedJune 25, 2026
Scale292 full-time staff (Washington WARN filing)
Share35%+ of ~850 employees
DepartureStudio head Justin Truman
Primary impactMost of Destiny team, part of Marathon team, SIE support staff
Surviving projectMarathon — development continues

"Fell Short of Expectations" — The Destiny 2 Shadow

Bungie acknowledged that Destiny 2 had "fallen short of expectations" over the past several years. The game's final content update shipped on June 9, and no new project has been greenlit for the Destiny team. The studio said it "could not continue operating" at its current size.

With most of the team cut the moment the last major update landed, the move reads as the end-of-life signal for a live-service title.

Sony's Math

Sony acquired Bungie for $3.6 billion in 2022 — at the time, an effectively emergency move to secure live-service expertise. But in early 2026 Sony booked a $565 million impairment loss tied to Bungie's struggles with both Destiny 2 and Marathon.

These layoffs extend a restructuring that has been folding Bungie deeper under the Sony umbrella four years on.

What About Destiny 3?

Marathon is the only game in active development at Bungie right now, and Sony has confirmed it will continue. There is no confirmation of Destiny 3. Despite widespread fan rallying, Sony has given no indication that a sequel is in the works.

GamePeak Take

LensKey Point
Short termDestiny 2 live-service effectively winding down
Headcount292 full-time cut, Truman departs
ParentSony recalibrates its $3.6B bet after four years
FutureMarathon stays, Destiny 3 uncertain

It is a case study in how a studio bought at a premium during the live-service boom gets unwound. Bungie's next chapter now hinges on whether Marathon lands.

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