PlayStation Studios Head Confirms Most of Destiny Team Will Face Layoffs

On June 25, 2026, PlayStation Studios head Hermen Hulst confirmed that most of the Destiny team at Bungie, the developer of the popular Destiny 2 game, will face layoffs. This announcement follows a recent reduction in Bungie's workforce, marking the second mass layoff in the company's history. In an update, Hulst explained that the decision to lay off the Destiny team was made after an extensive discussion and careful consideration with Bungie leadership.

The layoffs will reportedly affect most of the Destiny team, as well as some team members on Marathon, a project that is still in its early stages. Hulst praised the franchise as a whole, stating that Bungie would begin a new journey after the final content update for Destiny 2. The PlayStation Studios head noted that while the company explored multiple alternatives to the layoffs, it ultimately decided to reduce the workforce to align the studio's resources with its current priorities and long-term goals.

Bungie has been facing significant challenges in recent years, including a reduction in its workforce in June 2024. The company had to integrate 155 roles from Bungie into PlayStation, resulting in the formation of new studios like teamLFG. According to reports, the layoffs will be significant, with some sources suggesting that the number of affected employees could be in the hundreds.

The PlayStation Studios head also mentioned that teams at Sony Interactive Entertainment that helped support Bungie will also undergo a reduction. While the impact of the layoffs is still uncertain, Hulst assured that the company is providing transition support to affected employees and is working to identify opportunities across SIE and its global network of studios.

Regarding Marathon, Hulst stated that it is an important part of the company's portfolio and that it 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. The exact nature of these incubation efforts remains unclear, but the company seems optimistic about the opportunities ahead, despite the challenges posed by the extraction shooter, which has not exactly been setting records in terms of player count.

Bungie's decision to lay off most of the Destiny team raises questions about the future of the franchise. Despite the praise from Hulst, it remains to be seen whether the layoffs will impact the company's ability to create engaging content for fans. With a new journey reportedly on the horizon, Bungie will need to focus on rebuilding and repositioning itself to meet the demands of the gaming industry. One possible outcome could be the creation of spin-offs or new projects, but this remains speculation at this point.

The layoffs also have implications for the gaming industry as a whole. With the ever-changing landscape of game development, companies must adapt to stay relevant and competitive. While Sony Interactive Entertainment has been taking steps to expand its reach and influence, the layoffs at Bungie highlight the importance of strategic decision-making in this highly competitive environment.

As the gaming industry continues to evolve, it will be interesting to see how Bungie and PlayStation Studios navigate this new landscape. With a new journey on the horizon, fans of Destiny 2 will likely be eagerly awaiting more information about the future of the franchise.

Ultimately, the layoffs at Bungie serve as a reminder of the challenges facing companies in the gaming industry. While the reasons behind the layoffs may be complex, the impact on the industry as a whole will likely be felt for some time to come.