Bungie Hit by Layoffs Affecting Around 100 Employees

As of November 1, 2023, it has been reported that approximately 100 staff members at Bungie have been let go, accounting for about 8% of the company's 1,200 employees, according to Bloomberg. This move comes after CEO Pete Parsons announced earlier in the month that the company would be implementing cost-cutting measures, including salary and hiring freezes, as well as restrictions on travel, prior to the unexpected layoff announcement on Monday. Those affected by the layoffs will receive a minimum of three months' severance pay and health insurance, in addition to prorated bonuses. The community management and publishing teams appear to be disproportionately affected, with Bungie allegedly informing staff that these roles will be outsourced to a third-party provider moving forward. Earlier in the month, Bungie employees were reportedly warned about Destiny 2's underperformance, which has experienced a decline in popularity, with executives also disclosing that revenue was 45% below projections for 2023. CEO Pete Parsons cited Destiny 2's Lightfall expansion as a contributing factor to the game's poor player retention, as well as subpar feedback for the upcoming expansion, The Final Shape. IGN reported that The Final Shape has been delayed until June 2024, while Marathon, which has been in development since 2019, has been pushed back to 2025. However, Bloomberg suggests that these layoffs are part of a broader cost-cutting initiative driven by Bungie's parent company, Sony. In a statement shared on social media on Monday evening, Parsons expressed his sadness, stating, 'Today is a difficult day at Bungie as we bid farewell to colleagues who have made significant contributions to our studio. The impact these exceptional individuals have had on our games and Bungie's culture has been substantial and will continue to be felt at Bungie for a long time to come.'