Bungie has recently announced that they will be laying off 220 employees, which is about 17 percent of their total workforce. The CEO of Bungie, Pete Parsons, explained that these layoffs are due to the increasing costs of development, changes in the industry, and ongoing economic challenges.
The employees who are being laid off will receive a comprehensive exit package that includes severance, bonus, and health coverage. The company plans to hold town hall meetings, team meetings, and individual meetings with the affected employees to help them transition to their next steps. Despite these layoffs, Bungie still has 850 employees remaining.
In addition to the layoffs, Bungie is also integrating more closely with Sony Interactive Entertainment (SIE), which acquired the studio in 2022. They are planning to move 155 roles, which is 12 percent of their staff, to SIE over the next few quarters. This integration will allow Bungie to retain talent that would have otherwise been affected by the recent layoffs. Furthermore, Bungie is collaborating with PlayStation Studios to establish a new in-house studio that will continue working on one of their incubation projects, an action game set in a new science-fantasy universe.
Parsons acknowledged the challenges that led to these layoffs, mentioning the goal of developing games in three global franchises and several incubation projects. However, the studio found itself stretched too thin, leading to its support structures growing larger than they could sustain. This, along with the economic slowdown, industry changes, and the need to focus on high-quality releases like The Final Shape expansion for Destiny 2, pushed Bungie into a difficult financial position.
Despite efforts to address their financial challenges, the layoffs became a necessary step to ensure the long-term viability of the company. This decision follows a previous round of layoffs last October and comes in the wake of Bungie’s acquisition by Sony. The game industry has seen numerous job cuts in recent times, and Bungie hopes that the affected employees will find new opportunities soon.
Overall, these changes represent a strategic shift for Bungie as they navigate the evolving landscape of the gaming industry. By focusing on realistic goals, financial stability, and closer collaboration with Sony, Bungie aims to position itself for success in the future.