On the morning of June 25, 2026, hundreds of developers at Bungie opened a calendar invite they had been dreading. By the afternoon, the studio behind Destiny and Halo was a noticeably smaller place. The PlayStation Studios Bungie update confirmed what fans had feared for weeks: a major round of layoffs, the end of Destiny 2’s long live-service run, and a narrowed focus on the studio’s newer shooter, Marathon. Here is the full story, told step by step.
| Quick Answer On June 25, 2026, Sony Interactive Entertainment confirmed major layoffs at Bungie through a public letter from CEO Hermen Hulst. The cuts affect most of the Destiny team, some Marathon staff, and several SIE support teams. They follow Destiny 2’s final content update on June 9 and Marathon’s underwhelming launch. Sony says Marathon stays in its portfolio, with the team also moving to early incubation projects. Destiny 2 remains online but no longer receives new content. |
Key Takeaways
- Sony confirmed major Bungie layoffs on June 25, 2026, via a public letter from CEO Hermen Hulst.
- The cuts hit most of the Destiny team, some Marathon staff, and SIE support teams.
- Reports put the scale at several hundred roles, with one insider citing over 400 in the layoff call.
- Destiny 2 stays online but stopped receiving new content after its June 9 update.
- Marathon remains in Sony’s portfolio, with the team also shifting to future projects.
What the PlayStation Studios Bungie Update Announced
The news came directly from the top. Sony published a letter from Hermen Hulst, CEO of its Studio Business Group, originally sent to staff and then shared publicly. In it, he confirmed the studio would reduce its workforce, affecting a significant number of employees.
The letter named who was hit: most of the Destiny team, some Marathon team members, and several SIE teams that support Bungie’s operations. Affected staff were told the same day. You can read the full message on the official PlayStation Studios blog.
| In Sony’s Words Hulst called it “painful news, especially for talented colleagues whose roles have been eliminated.” He said the decision came only after extensive discussion, and that Sony explored multiple alternatives before concluding a reduction was necessary to align the studio’s resources with its priorities. |
How Big Are the Layoffs?
Sony did not give an exact number in its letter. Reporting from the gaming press helps fill in the scale, though figures vary as the picture settles.
- Forbes reporter Paul Tassi, a longtime Bungie insider, said there were over 400 people in the layoff call.
- Kotaku later reported a figure of at least 292 roles eliminated.
- Bungie’s headcount was around 800 before the cuts, down from roughly 1,300 at its pandemic-era peak.
Whatever the final tally, this is one of the largest single reductions in the studio’s history. Bungie itself acknowledged it could not continue operating at its previous size after Destiny 2’s final update.
| Worth Knowing Exact numbers in the first hours of a layoff are often unreliable. Treat the 400-plus and 292 figures as early estimates from different outlets, not a confirmed total from Sony. |
Why This Happened, Step by Step
This update did not arrive out of nowhere. A chain of events over several months led here. Walking through them makes the decision easier to understand.
- Destiny 2 slowed down. Player numbers fell over recent years, and the game did not reach the long-term success Sony had hoped for.
- The studio bet on Marathon. Bungie shifted focus to a new extraction shooter rather than building a full Destiny 3.
- Marathon underwhelmed. Its March 2026 launch drew a passionate but small audience in a crowded genre.
- Destiny 2 wrapped up. The final content update, Monument of Triumph, released on June 9, 2026, ending nine years of live service.
- Sony restructured. With one game winding down and the other still finding its feet, Sony cut the studio to match its narrower slate.
| Quick Take Put simply, Bungie was built around two big live-service games. One has now stopped getting new content, and the other has not yet found a mass audience. The layoffs are Sony resizing the studio to fit that reality. |
What It Means for Destiny 2
If you play Destiny 2, here is the practical picture. The servers stay online, and you can keep playing the content already released. What stops is new development.
After the Monument of Triumph update, Destiny 2 entered a long-term maintenance phase. That means no new expansions or seasonal content are currently planned. Fans rallied to try to save the game and push for a Destiny 3, but Sony has shown no sign of changing course.
| The Standout Destiny defined the modern looter shooter and built one of gaming’s most devoted communities over more than a decade. Hulst called what Bungie achieved with it “truly remarkable.” For longtime players, this update reads like the close of an era. |
What It Means for Marathon
Marathon survives, but with a smaller team. Sony was clear that the sci-fi extraction shooter remains an important part of its portfolio, and that it will keep supporting the project.
There is a real roadmap ahead. Reporting points to a new player-versus-environment mode arriving in late July, with a third season following in September. The remaining team is also said to be working on early incubation efforts for future projects. The challenge is the genre itself, where rivals like ARC Raiders compete hard for the same players.
How Bungie Got Here
To understand this moment, it helps to see the longer arc. Bungie has been through several rounds of cuts since Sony bought the studio. Here is the recent history at a glance, based on reporting from outlets including Kotaku and GamesHub.
| When | What Happened |
| 2022 | Sony acquires Bungie for about $3.6 billion |
| October 2023 | Roughly 100 roles cut |
| July 2024 | Around 220 more roles cut |
| March 2026 | Marathon launches to a small audience |
| June 9, 2026 | Destiny 2’s final content update releases |
| June 25, 2026 | Major layoffs confirmed by Sony |
Some figures come from press reporting and may be refined over time.
Sony also recorded large write-downs tied to both games across its last fiscal year, a sign of how much the financial picture had shifted. This is a story years in the making, not a sudden reversal.
What Should Players Expect Next?
For now, expect stability rather than surprises. Destiny 2 stays playable in maintenance mode with no new content planned. Marathon continues with its July mode and September season. Bungie becomes a smaller studio focused on Marathon and early-stage projects it has not yet revealed. Sony has not announced any new Destiny game.
If you follow PlayStation closely, this fits a wider pattern of Sony reshaping its live-service plans. For more on the platform, our roundup of the PS Plus July 2026 games leaving the catalog covers another change landing the same month, and our look at Persona 6 and the latest showcase reveals shows what is still coming to PS5.
The PlayStation Studios Bungie update marks a hard turning point for a studio that shaped modern shooters. Behind the portfolio language are real people who lost their jobs, and a Destiny community saying goodbye to new content after years of play.
What comes next rests on Marathon and on whatever Bungie is quietly building. For players, the immediate reality is simpler: Destiny 2 lives on in maintenance, Marathon keeps growing, and a smaller Bungie tries to find its next chapter.
| Your Move Want to keep up with PlayStation news as it develops? Browse more in our Gaming section for clear, steady coverage. |
Frequently Asked Questions
What is the PlayStation Studios Bungie update?
It is a June 25, 2026 announcement from Sony Interactive Entertainment confirming major layoffs at Bungie. CEO Hermen Hulst shared the news in a public letter, citing most of the Destiny team and some Marathon staff among those affected.
How many people were laid off at Bungie?
Sony did not give an exact figure. A Forbes insider reported over 400 people in the layoff call, while Kotaku cited at least 292 roles. Bungie’s headcount was around 800 before the cuts.
Is Destiny 2 shutting down?
No. Destiny 2 servers remain online and the game stays playable. However, it has entered a maintenance phase after its June 9 final update, with no new expansions or seasonal content currently planned.
Is Marathon cancelled?
No. Sony says Marathon remains an important part of its portfolio and will keep getting support. A new player-versus-environment mode is planned for late July, with a third season set for September.
Why did Sony lay off Bungie staff?
Sony said the cuts align the studio’s resources with its current priorities. They follow declining Destiny 2 numbers, the end of its live service, and Marathon’s smaller-than-hoped launch, which left Bungie larger than its slate required.
Will there be a Destiny 3?
Sony has not announced a new Destiny game. Fans campaigned for Destiny 3 after Destiny 2 wound down, but there is currently no sign of one in development. Bungie’s stated focus is Marathon and early incubation projects.
