Bungie reportedly warned employees of “sharp drop” in Destiny 2 popularity prior to layoffs

Yesterday’s layoffs at Bungie, the developer behind Destiny 2, had a significant impact on the company. Approximately 100 employees, which accounts for 8% of Bungie’s 1,200-strong workforce, were let go. This unfortunate event comes after management had warned staff that revenue for the year was falling well below expectations. The news was first reported by Bloomberg, which also revealed that just two weeks ago, Bungie employees were informed that revenue was 45% below projections. The decline in revenue is attributed to a sharp drop in the popularity of Destiny 2, as CEO Pete Parsons noted weak player retention during the same meeting.

Apart from the revenue decline, Parsons shared news about Destiny 2’s next expansion, The Final Shape. According to sources present at the meeting, Parsons acknowledged that the expansion was receiving only “good” rather than “great” feedback. As a result, management decided to delay its release in order to enhance the product. In addition to this, Parsons outlined various cost-cutting measures, including salary and hiring freezes, asking employees to work together to overcome the challenges.

Bungie announced a February 2024 release for Destiny 2’s The Final Shape expansion in August.

On Monday morning, many employees were surprised to find a 15-minute meeting scheduled, only to discover that they were being let go from the company. Around 8% of the workforce, or approximately 100 employees, were laid off, primarily from support departments such as community management and publishing. Although affected workers will receive a minimum of three months of severance pay and Bungie-paid COBRA health insurance, additional benefits ceased on Monday.

Bloomberg notes that these layoffs are part of a broader cost-cutting initiative within PlayStation, resulting in job cuts at other studios like Media Molecule and Naughty Dog.

In response to the layoffs, CEO Pete Parsons expressed his sadness on social media. He praised the contributions of the affected employees to Bungie’s games and culture and stated that their impact would be long-lasting.