Bungie, the developer of Destiny 2, faced layoffs recently, affecting approximately 8% of its workforce. This comes after management warned employees about revenue falling below expectations.
According to Bloomberg, Bungie employees received “dire management warnings” just two weeks ago, stating that revenue was 45% lower than projected. This drop is attributed to a decline in the popularity of Destiny 2, with CEO Pete Parsons emphasizing weak player retention.
During the same meeting, Parsons revealed that feedback for Destiny 2’s next expansion, The Final Shape, was only “good” instead of “great.” As a result, the release of the expansion will be delayed to improve its quality.
Parsons also discussed cost-cutting measures, including salary and hiring freezes. He urged employees to “work together to weather the storm.” However, many employees started their day with a 15-minute meeting, only to discover that they were being terminated from the company.
According to Bloomberg, around 100 employees, primarily from support departments such as community management and publishing, were laid off. They will receive three months of severance pay and Bungie-paid COBRA health insurance, but other benefits have ceased.
These layoffs are part of a broader cost-saving effort at PlayStation, which has also led to job cuts at Media Molecule, Naughty Dog, and other areas of the business.
Following the news of the layoffs, Parsons expressed his sadness on social media and praised the contributions of the affected employees. He stated that their impact on games and the Bungie culture will continue into the future.
