Morale Plummets at Bungie Following Mass Layoffs Amid Sony Acquisition
Sources within Bungie are reporting a troubling atmosphere behind the scenes as the developer grapples with the aftermath of mass layoffs and cost-cutting measures that have left morale at an all-time low. The situation has been exacerbated by the looming threat of full absorption by Sony, following the company’s acquisition of Bungie for $3.6 billion in 2022.
Acquisition by Sony
While Bungie was acquired by Sony, the company has maintained a degree of independence on paper. However, the board of directors now includes key figures from PlayStation Studios and Sony, leaving Bungie with the obligation to meet certain financial targets stipulated by Sony in the acquisition agreement.
This stipulation grants Bungie CEO Pete Parsons a tie-breaking vote on decisions, but failure to meet financial targets would allow Sony to dissolve the board and take full control of the company.
Financial Struggles and Layoffs
In light of the financial forecast miss and record-low player count for Destiny 2 following the release of Lightfall, Bungie made the decision to lay off 100 staff members across multiple departments in an effort to reduce costs. The company also implemented cost-cutting measures such as a hiring freeze, removal of holiday bonuses, reduced travel budgets, and paused or ended several employee benefits.
Faltering Morale
The atmosphere at Bungie has suffered as a result, leading to widespread reports of senior management’s apparent indifference or hostility towards the situation. The erosion of trust between employees and management has led to a significant deterioration in morale.
Uncertain Future
With the delay of the upcoming expansion, The Final Shape, Bungie is hoping to avoid further layoffs and secure a more favorable performance. The developer now finds itself in a precarious position, caught between alleged poor leadership and Sony’s high expectations for the Destiny studio.