Bungie affected by layoffs

Update, November 1, 2023: The layoffs at Bungie affected around 100 people, which is about 8% of its 1,200 staff, Bloomberg reported.

Sources told the publication that CEO Pete Parsons said earlier this month that Bungie would be cutting costs with salary and hiring freezes, as well as limiting travel, before the unexpected layoffs were announced on Monday.

Staff laid off will receive a minimum of three months of severance and health insurance, as well as prorated bonuses.

Community management and publishing teams seem to be particularly affected by the layoffs, with Bungie reportedly telling staff that these jobs will be handed to a third party going forward.

Earlier this month, Bungie staff was reportedly warned that Destiny 2 was underperforming and had experienced a drop in popularity, with executives also telling employees two weeks ago that revenue was 45% below projections for 2023.

CEO Pete Parsons reportedly cited Destiny 2's Lightfall expansion as a factor in the title's poor retention, as well as feedback not being where it needed to be for upcoming expansion The Final Shape. IGN reported that the latter has now been delayed to June 2024, while Marathon, which has been in development since 2019, has been pushed back to 2025.

However, Bloomberg believes that the layoffs are part of a larger cost cutting initiative coming from Bungie parent company, Sony.

Parsons shared a statement on social media on Monday evening, saying: "Today is a sad day at Bungie as we say goodbye to colleagues who have all made a significant impact on our studio. What these exceptional individuals have contributed to our games and Bungie culture has been enormous and will continue to be a part of Bungie long into the future."

Original story, October 30, 2023: Bungie joins the ongoing number of studios to have job cuts.

Community manager and co-lead of accessibility, Liana Ruppert, took to social media to confirm she was among the group let go from the studio.

Bloomberg's Jason Schreier confirmed the report of layoffs, saying Bungie CEO Pete Parsons sent an email to staff today informing them of a team meeting as the employees were being informed of the cuts.

Bungie joins the growing number of studios to have job cuts this year.

PlayStation studio Media Molecule reduced its workforce last week. October also saw Last of Us maker Naughty Dog reportedly lay off dozens of contractors.

Visual Arts also saw a round of layoffs in May, around the same time Sony shut down Pixel Opus, the developer of Concrete Genie.

During May, independent studio Deviation Games, which was working with Sony on an original title, reduced its staff by 90 employees.

GamesIndustry.biz has reached out to Sony for comment.