Bungie CEO Addresses Layoffs, Blames Destiny 2 Underperformance
In an internal town hall meeting, Bungie CEO Pete Parsons reportedly assured employees that the company had retained the “right people” to continue working on Destiny 2. The meeting came in response to a round of layoffs that affected multiple departments on Monday.
Confirming reports that Bungie took responsibility for the layoffs rather than blaming parent company Sony, Parsons attributed them to the underperformance of Destiny 2 over the past year. He also cited lower-than-expected preorders for the upcoming expansion, The Final Shape.
Recent reports have independently confirmed that The Final Shape has been delayed to June 2024, while another game, Marathon, has been internally pushed back to 2025. Marathon has been in development since 2019.
Furthermore, employees were informed that player sentiment for Destiny 2 was at an all-time low. Sources revealed that this concern had been raised with company leadership for months before the layoffs, with employees advocating for necessary changes to regain player interest.
An ex-employee recalled assurances following Bungie’s 2022 acquisition by Sony that there would be no layoffs. They pointed to a Sony quarterly report stating that $1.2 billion of the $4 billion acquisition was designated for staff retention. However, money was apparently distributed only to fully vested employees in multiple payments over time, varying based on discipline and seniority.
Some employees expressed frustration with the layoffs, feeling they were being punished for issues beyond their control. They stated that decisions leading to the company’s financial struggles were made by individuals in departments they were not associated with.
Reports revealed that approximately 100 employees were impacted by the layoffs. Bungie leadership allegedly attempted to obscure the numbers and departments affected while discouraging employees from discussing these topics in company channels. The community team, art, engineering, recruiting, legal, audio, QA, creative studios, IT, and members of the company’s diversity committee and accessibility club were all affected. Impacted employees will receive a minimum of three months’ severance and COBRA health benefits, although other company benefits were terminated immediately.
Additionally, it was revealed that a significant number of employees had previously been dismissed from the QA team. While the exact number is unknown, the dismissals were claimed not to be layoffs or the result of cost-cutting. An email from the head of QA to staff members addressed the situation, asserting that the company would be upfront if there were ever layoffs.
Allegations have also been made about a toxic work culture at Bungie. In 2021, IGN reported on the ongoing efforts of employees to improve the situation. However, a former HR manager has filed a lawsuit against Bungie, claiming wrongful termination for reporting potential racial bias within the company.
IGN has reached out to Bungie for comment on the situation.