Yesterday, Destiny 2 developer Bungie made a significant impact on its workforce, with approximately 100 employees, which accounts for about eight percent of its 1200-strong team, facing layoffs. This move followed warnings from management just weeks prior, indicating that the company’s revenue for the year was well below expectations.
According to reports from Bloomberg, Bungie employees received concerning updates from management, with revenue falling 45 percent short of projections just two weeks before the layoffs. This decline is attributed to a sharp decrease in the popularity of Destiny 2, and Bungie CEO Pete Parsons reportedly pointed out weak player retention as a contributing factor.
During the same meeting, sources attending the meeting informed Bloomberg that Parsons conveyed that the feedback for Destiny 2’s next expansion, “The Final Shape,” which marks the conclusion of the game’s current Light and Darkness storyline, was only “good” rather than “great.” Consequently, the management decided to postpone its release in order to enhance the product.
During the meeting, Parsons is reported to have discussed cost-cutting measures, which included implementing salary and hiring freezes. He emphasized to the employees that they would need to “work together to weather the storm.” However, it appears that a significant number of employees began their Monday morning with an unexpected 15-minute meeting on their schedule, during which they were ultimately informed of their termination from the company. Destiny 2 developer
Bloomberg, based on documentation reviewed by the publication, says around eight percent – approximately 100 employees – were laid off, primarily from company’s support departments, including community management and publishing. All affected workers will reportedly receive at least three months of severance pay and three months of Bungie-paid COBRA health insurance, but additional benefits are said to have ended Monday.
Bloomberg says the layoffs are part of a “larger money-saving initiative” at PlayStation, which has also resulted in job cuts at Media Molecule, Naughty Dog, and other areas of the business.
Following the news of layoffs at Bungie, Parsons took to social media to call it a “sad day” for the studio. “What these exceptional individuals have contributed to our games and Bungie culture has been enormous and will continue to be a part of Bungie long into the future,” he wrote. “These are truly talented people.”