The studio Bungie has announced significant layoffs. A total of 220 employees, or roughly 17% of the workforce, will lose their jobs.
Marathon
The layoffs will affect employees at all levels. Both rank-and-file workers and top managers will be involved. The studio promises to support all those laid off and to provide generous severance packages.
According to Bungie CEO Pete Parsons, the studio is forced to proceed with the layoffs due to financial problems. He explained that in recent years, Bungie has been trying to work on games from three franchises simultaneously, but this proved to be too difficult. The studio had overly ambitious goals, ultimately overextended itself, and began operating at a loss. Bungie was also impacted by the failure of the Lightfall expansion for Destiny 2 (although The Final Shape performed well), a sharp decline in the gaming industry, and the poor global economic situation. Now Bungie will focus on two franchises — Destiny and Marathon.
Parsons added that Bungie tried to avoid layoffs but had no other options to help the studio recover.
It was also reported that Bungie will strengthen its integration with Sony Interactive Entertainment:
- Over the next several quarters, 155 Bungie employees will be transferred to other company structures. This decision will help fewer people lose their jobs;
- Bungie will open a new studio within PlayStation Studios and will transfer the development of an unannounced action game in a new sci-fi universe to this studio.