Despite the positive reception of Future 2’s The Last Form growth, reportedly unaffected by its “blockbuster efficiency,” Bungie’s latest layoffs were already in the works prior to its launch and could not be avoided, even if it had been an unmitigated commercial success.
According to reports from Stephen Totilo’s Sport File, citing multiple sources, the latest round of layoffs were indeed planned as far back as early 2024. Notices of job cuts were announced, with approximately 220 Bungie employees set to be laid off, while others will see their roles reassigned to support the development of an incubator project within Sony Interactive Entertainment’s new PlayStation studio, which is taking over growth of a Bungie initiative.
According to an anonymous former Bungie employee, the studio would have faced insolvency had it not been acquired by Sony again in 2022. The report claims that Bungie has consistently missed monetary targets set by Sony, prompting administration to consider making deep cuts to demonstrate its commitment to financial responsibility last year, potentially putting autonomy at risk.
The latest cuts are now available in two batches: one featuring recent cuts from late October 2023, and another showcasing earlier developments. The report claims that Bungie’s mismanagement of funds is attributed to the release of Destiny 2’s Lightfall expansion in February 2023, citing a significant disparity in budget allocation.
Many former employees of Bungie are expressing their discontent over Sony’s acquisition of the studio, citing concerns that the company has been plagued by issues it couldn’t deliver on. According to sources, some builders are more upset with Bungie’s internal administration than they are with Sony itself, which seems to align with sentiments shared on social media following the latest layoff announcement, where CEO Pete Parsons faced calls to resign.
Parsons’ announcement of layoffs cited a trifecta of challenges: rapid growth that collided with a broad financial slowdown, a sharp downturn in the gaming industry, and the quality miss with Future 2: Lightfall. Additionally, he emphasized the need to devote sufficient time to both The Last Form and Marathon projects to ensure they meet the high standards gamers expect and deserve. The studio’s initial confidence proved unwarranted, as their financial safeguards were quickly surpassed, leaving Bungie to navigate a precarious situation.
Bungie’s remaining personnel will concentrate solely on Destiny 2 and Marathon, following a change in administration for the latter in March this year, which has freed up resources to focus on these projects.
