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Engadget is a web magazine with obsessive daily coverage of everything new in gadgets and consumer electronics

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Sony announces major layoffs at Bungie, including most of the Destiny team - Engadget
Lawrence Bonk · 2026-06-26 · via Engadget is a web magazine with obsessive daily coverage of everything new in gadgets and consumer electronics

Some devs working on Marathon have also been laid off and studio head Justin Truman has stepped down.

There are bad things happening over at Bungie. Sony just announced a major round of layoffs, primarily impacting the team behind the Destiny franchise. We don't know many employees were impacted, only that it was a "significant number."

Sony says it "explored multiple alternatives before concluding that a reduction was necessary to align the studio's resources with its current priorities and long-term goals." This comes directly after the final content update for Destiny 2, and was likely already in the works before that. We learned via Bloomberg's reporting back in May that developers weren't working on Destiny 3 and that Bungie layoffs were likely forthcoming.

pic.twitter.com/ceJTcKMs23

— Bungie (@Bungie) June 25, 2026

This decision has also impacted some members of the Marathon team, though that game is still getting content updates. Sony says the remaining team will be working on Marathon alongside "incubation efforts for future projects." There have even been reductions across Sony's gaming division, primarily impacting folks working alongside Destiny and Marathon devs.

These cuts go to the very top. Bungie studio head Justin Truman is stepping down, according to Bloomberg. It's no secret that Sony hasn't been pleased with Destiny 2's financials, with the company saying last year that the game's "sales and user engagement have not reached the expectations" it counted on when the electronics giant purchased Bungie.

Sony bought Bungie back in 2022, in a deal reportedly worth $3.6 billion. The company has since lowered the value of the company to around $2.8 billion, making for a loss of over $700 million.