Summary (tl;dr)

Bungie, the video game studio behind Destiny and Halo, is undergoing a major reorganization with widespread layoffs, primarily affecting its Destiny 2 team. Concurrently, Justin Truman is reportedly stepping down as Studio Head after less than a year in the role.

Essential Background

Bungie was acquired by Sony Interactive Entertainment (PlayStation) for $3.6 billion in January 2022, with assurances that the studio would maintain its independent, multi-platform operations. However, the studio has faced financial challenges, with Destiny 2 reportedly underperforming and its 2023 revenue falling 45% below projections. This underperformance led to previous rounds of layoffs, affecting around 100 employees in October 2023 and an additional 220 in July 2024. Justin Truman took over as Studio Head in August 2025, following the departure of former CEO Pete Parsons. The final content update for Destiny 2, "Monument of Triumph," was released earlier this month.

The Full Story

Today, June 25, 2026, Bungie announced a significant "reduction in force" and reorganization, resulting in extensive layoffs across the company. These cuts disproportionately impact the Destiny 2 development team, with "most of the Destiny team" being affected, along with some members of the Marathon team. Additionally, some Sony Interactive Entertainment employees who supported Bungie's operations have also been let go. Amidst these organizational changes, Justin Truman is reportedly stepping down as Bungie's Studio Head, a position he held for less than a year. Bungie stated that the decision was necessary because Destiny 2 "fell short of expectations" in recent years, and with future projects in "early incubation," the studio could no longer sustain its previous operational size. Sony has affirmed that Marathon remains an "important part of our portfolio" and committed to supporting its development team.

Why It Matters

These events signal a critical juncture for Bungie and its relationship with PlayStation. The departure of Studio Head Justin Truman, coupled with significant layoffs affecting the core Destiny team, highlights ongoing struggles within the studio and potentially a shift away from its long-running franchise as the primary focus. The widespread job cuts raise concerns about the financial viability of live-service games, especially following Sony's substantial $3.6 billion investment in Bungie and subsequent reporting of $700 million in impairment losses. The future success of Marathon and other new intellectual properties will be crucial for Bungie's long-term stability and role within the PlayStation ecosystem.

Geographic Location

• Bellevue, Washington, United States (Bungie studio impacted by layoffs and leadership change)
• San Mateo, California, United States (Sony Interactive Entertainment headquarters, owner of Bungie, made statements regarding layoffs)