Sony Interactive Entertainment has gutted Bungie, axing 292 positions in Washington state alone according to official WARN filings, with the cuts hitting most of the Destiny 2 team and some Marathon staff. The move follows the June 9 end of Destiny 2's final content update, Monument of Triumph, and comes as the studio admits the live service fell short of expectations after years of declining popularity. PlayStation Studios head Hermen Hulst described the reductions as necessary to align resources, while noting the $3.7 billion acquisition in 2022 now looks like a costly misfire amid Marathon's reported underwhelming sales of roughly 1.2-1.5 million copies and shrinking player counts.

Washington state records confirm the scale exceeds initial announcements, though the true total may be higher since the filings cover only local Bungie/SIE roles. Earlier layoffs in 2023 and 2024 already trimmed hundreds more, and no Destiny 3 is in active development. Community reaction on X and Reddit ranges from resignation over repeated studio mismanagement to sharper criticism of leadership betting the farm on an extraction shooter that never matched Destiny's peaks.

Sony is absorbing the losses while shifting priorities, but the pattern of acquisition flops and live-service overreach continues to claim jobs at scale. The receipts are public, the impact is immediate, and the next chapter for the studio looks thinner than ever.