Sony Interactive Entertainment has confirmed a major wave of layoffs at Bungie, with the cuts landing hardest on the studio's flagship franchise. In an internal email sent to staff today and published on Sony's blog, SIE Studio Business Group CEO Hermen Hulst confirmed the reduction affects "a significant number of employees, including most of the Destiny team and some Marathon team members," along with SIE teams that support Bungie's operations.
Bungie addressed the news directly in its own statement, calling it "a reduction in force as we reorganize Bungie" and conceding what many players have complained about for years: that Destiny 2 "fell short of expectations these past several years." The studio said that following the game's final content update, and with its future projects "still in early incubation," it "could not continue operating at our previous size."
How Many Jobs Affected?
Neither Sony nor Bungie has put out a number on the cuts but the impact is "significant".
Where Does This Leave Marathon?
Despite cutting some of its developers, Sony insists Marathon isn't going anywhere. Hulst called it "an important part of our portfolio" and promised continued support "as they build on the strong foundation established in Season 1 and 2," alongside incubation work on unannounced future projects.
Data on SteamDB shows Marathon is currently near its lowest player count in the game's short history.
It's difficult to make any kind of analysis without knowing for sure which roles on the Marathon team were scrapped. If the roles were not development-focused, the game could still be on a good trajectory with updates and if Bungie can pull out a couple of good back-to-back updates to engage players again, it could see success.
Extraction shooter rival, ARC Raiders, on the other side of things though is seeing great success and Escape From Tarkov, which almost certainly has its most dedicated players off of Steam since it only recently hit Steam availability, is also crushing Marathon's player numbers. Both games are quite a bit more mature, but the genre is quite populated and it isn't just your studio name that drives player count, it's all about having an actually good game. Releasing games that are more barebones in a populated genre is a risky play.
What Happens Now?
Hulst said SIE's "immediate priority is supporting affected employees through this transition," including efforts to find roles elsewhere across Sony's network of studios. Bungie says it will share more about its future projects "in the future", but, in the studio's words, "today is not that day."
What that future actually looks like, and whether a Bungie built around an underperforming Marathon and a slate of unannounced incubation projects can hold together, is the question now hanging over one of the most iconic names in the industry. Oh how far Bungie has fallen in just a few years.
This is just another set of disappointing layoffs that we've seen in 2026 for the games industry.
FUll Statement
Quote From Hermen Hulst Dear Team,
Today I want to share a difficult update regarding Bungie.
We have made the decision to reduce Bungie’s workforce, affecting a significant number of employees, including most of the Destiny team and some Marathon team members. There are also reductions across SIE teams that support Bungie’s operations. Those impacted at Bungie and within SIE are being informed today.
This is painful news, especially for talented colleagues whose roles have been eliminated. This decision was made only after extensive discussion and careful consideration, and I want to provide some context on how we arrived here. Over the past several months, together with Bungie leadership, we reviewed the studio’s long-term direction, development priorities, resource needs, and role within our broader portfolio strategy. We explored multiple alternatives before concluding that a reduction was necessary to align the studio’s resources with its current priorities and long-term goals.
As Bungie recently shared in its Destiny 2 update, the studio has begun a new journey following the release of the game’s final live-service content update. What Bungie has accomplished with Destiny over the past decade has been truly remarkable. The franchise has left a lasting mark on players and the industry, and everyone who contributed to its success should be proud of what they helped create.
Marathon remains an important part of our portfolio, and we will continue to support the team as they build on the strong foundation established in Season 1 and 2, and as they work on incubation efforts for future projects. While it’s too early to discuss, we are encouraged by the creativity and opportunities that lie ahead.
Our immediate priority is supporting affected employees through this transition. We are providing transition support and, where possible, working to identify opportunities across SIE and our global network of studios.
I want to sincerely thank every affected employee for their hard work, creativity, and contributions to Bungie, SIE, and the broader gaming community.
I know today’s news is deeply difficult not only for those leaving, but for those colleagues and friends that remain. Please take the time you need to process this news and support one another.
Thank you for your resilience and continued support during this difficult time.
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