Sony lays off most of Destiny team at Bungie

Key Takeaways

• Sony has laid off a 'significant number' of Bungie employees, primarily from the Destiny team
• Studio head Justin Truman is stepping down as part of the restructuring
• Sony has written down Bungie's value from $3.6 billion to $2.8 billion, a loss of over $700 million

Sony has laid off a "significant number" of Bungie employees, with the Destiny franchise team taking the heaviest losses. The cuts come days after Destiny 2's final content update shipped, and studio head Justin Truman is stepping down as part of the restructuring.

Sony Interactive Entertainment confirmed the layoffs on June 25, 2026, stating it "explored multiple alternatives before concluding that a reduction was necessary to align the studio's resources with its current priorities and long-term goals." The company did not disclose exact headcount numbers.

What happens to Marathon and future projects?

The layoffs extend beyond Destiny. Some members of the Marathon team have also been cut, though Sony says that game will continue receiving content updates. The remaining staff will work on Marathon alongside what Sony calls "incubation efforts for future projects." Reductions have also hit other parts of Sony's gaming division, particularly teams that worked alongside Bungie's Destiny and Marathon developers.

Bloomberg reported in May that Bungie developers were not working on Destiny 3, signaling these cuts were already in motion before the final Destiny 2 update. The writing was on the wall.

Sony's $700 million loss on Bungie

Sony acquired Bungie in January 2022 for a reported $3.6 billion. The deal was supposed to give Sony a premier live-service studio with a proven track record. That bet has not paid off.

Last year, Sony publicly acknowledged that Destiny 2's "sales and user engagement have not reached the expectations" it counted on when it bought the studio. The company has since written down Bungie's valuation to approximately $2.8 billion, a paper loss of over $700 million. These layoffs represent the next phase of that correction.

This is not Bungie's first reduction under Sony ownership. The studio cut roughly 8% of its workforce, about 100 employees, in 2024. Before that round, Bungie employed more than 850 people. The current cuts appear substantially larger, though Sony has not released figures.

Justin Truman's departure signals deeper problems

Studio head Justin Truman stepping down is the clearest indicator that Sony sees this as a leadership failure, not just a market correction. When executives leave alongside rank-and-file layoffs, it typically signals the parent company is asserting direct control over the subsidiary's direction.

Bungie built its reputation on Halo, then proved it could replicate that success independently with Destiny. But the live-service model that made Destiny profitable in the mid-2010s has become crowded. Players have more options. Engagement has fragmented. And Sony paid peak valuation for a studio whose flagship franchise was already showing fatigue.

What this means for Destiny players

The final content update for Destiny 2 already shipped. With most of the Destiny team now gone and no work happening on Destiny 3, the franchise appears to be in maintenance mode at best. Sony's statement focuses entirely on Marathon and undefined "incubation" projects. Destiny, for now, seems to be done as an active development priority.

Players who invested years into the Destiny ecosystem are left with a complete but unsupported game. Whether Sony eventually greenlights a Destiny 3 with a smaller team, or shelves the IP indefinitely, remains unclear.

Frequently Asked Questions

How many Bungie employees were laid off?

Sony has not disclosed exact numbers, describing only a 'significant number' of employees affected. The cuts primarily hit the Destiny team, with some Marathon developers also impacted.

Is Destiny 3 cancelled?

Bloomberg reported in May 2026 that Bungie developers were not working on Destiny 3. With most of the Destiny team now laid off, a third mainline game appears unlikely in the near term.

What happens to Marathon?

Sony says Marathon will continue development and content updates. The remaining Bungie staff will focus on Marathon alongside 'incubation efforts for future projects.'

Why did Justin Truman step down?

Sony has not explained Truman's departure. Leadership exits during mass layoffs typically indicate the parent company is taking more direct control of the studio's direction.

How much has Sony lost on Bungie?

Sony paid $3.6 billion for Bungie in 2022 and has since written the studio's value down to approximately $2.8 billion, representing a loss of over $700 million on paper.

Source: Engadget