Sony has announced a new round of layoffs at its game studio, Bungie, impacting employees working on Destiny and some on the Marathon team, and several at Sony Interactive Entertainment (SIE). While the company did not reveal the percentage of workforce impacted, but it explained that it needs to become a smaller company as its future game projects are still in early development and are not yet large enough to justify its current workforce size.

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Sony's Bungie layoffs

Hermen Hulst, CEO of Studio Business Group at Sony Interactive Entertainment, shared an X post announcing the decision, claiming it to be “difficult” and “painful.” He also highlighted that the layoffs were necessary as the company plans to focus its money, staff, and resources on supporting the studio's future plans.

"We recognize Destiny 2 fell short of expectations these past several years," Bungie said on X. 

"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."

The layoffs were announced as Bungie's main revenue-generating Destiny 2, has reached the end of its lifecycle, and Marathon hasn't delivered the expected player growth. In addition, the studio's next projects are still years away from becoming major businesses, making it challenging for the company to maintain its previous workforce size.

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On the other hand, Marathon also struggled amid intense competition. However, Hulst said Marathon “remains an important part of our portfolio.”

In an internal mail, Hulst said, "This is painful news, especially for talented colleagues whose roles have been eliminated. This decision was made only after extensive discussion and careful consideration."

“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,” he added. 

Sony claims to offer transition assistance, which may include severance packages, career counselling, job placement support, and other resources. In addition, it may also move some affected employees to other teams or studios instead of letting them go completely.