Bloomberg Report Details Workforce Reductions at Bungie
Bungie, the video game developer, is planning significant staff cuts following the conclusion of development on its live-service shooter, Destiny 2, according to a report by Bloomberg’s Jason Schreier on May 21, 2026. The news has sent ripples through the gaming industry, highlighting ongoing volatility in the sector.
The report indicates that the layoffs are directly tied to the studio ending active development and content delivery for Destiny 2, a title that has been a cornerstone of Bungie’s operations for over a decade. Bungie has not yet issued a formal statement regarding the number of employees affected or the specific timeline of the planned reductions.
Background on Destiny 2 and Bungie’s Financial Health
Destiny 2, which launched in 2017, has been a live-service game, meaning it required continuous updates, expansions, and seasonal content to retain its player base. The end of this development cycle suggests a strategic pivot for the studio, possibly towards new intellectual property or existing projects like Marathon, a extraction shooter announced in 2023.
Financially, Bungie has faced pressure since its separation from Activision in 2019 and subsequent acquisition by Sony Interactive Entertainment in 2022 for $3.6 billion. While the Sony deal provided capital, the studio has struggled with missed revenue targets and shifting market conditions. Earlier layoffs in October 2023 saw 8% of its workforce cut, affecting around 220 employees.
Implications for the Gaming Workforce
The planned layoffs at Bungie continue a broader trend of job losses in the video game industry. In 2024 and 2025, major studios including Microsoft, Riot Games, and Electronic Arts announced significant workforce reductions, citing restructuring and changing player habits. Game developers and industry analysts have expressed concern about the long-term impact on talent retention and product diversity.
The end of Destiny 2 development also raises questions about the game’s future. While the reports state that development is ending, it may leave the existing game servers operational, similar to how Blizzard Entertainment handled StarCraft II after stopping new content. Bungie has not clarified whether the title will enter a maintenance mode or be fully shut down.
Reactions from the Community and Industry
Reactions from the gaming community have been mixed, with many players expressing disappointment over the end of a major content cycle and concern for affected employees. Industry observers note that Bungie’s decision reflects a broader industry reevaluation of the live-service model, which has proven to be both lucrative and risky.
Without official confirmation from Bungie or Sony, the full scope of the layoffs remains unclear. However, Bloomberg’s reporting suggests the cuts will be substantial, potentially affecting hundreds of positions across various departments including engineering, art, and community management.
Source: Bloomberg, GamesIndustry.biz
