Former Bungie employees told journalist Stephen Totilo from Game File that the studio's management had long been preparing for large-scale layoffs. The decision was made months ago.
Destiny 2: The Final Shape
It is reported that Bungie was forced to say goodbye to hundreds of people to stop operating at a loss. Although rank-and-file employees were hoping layoffs would be canceled if the sales of the Destiny 2 expansion The Final Shape were excellent, the management understood it would not be enough to save the studio.
According to Totilo's interviewees, The Final Shape received critical acclaim but did not become a major hit. It sold worse than the previous expansion Lightfall. It is worth noting that this statement somewhat contradicts the claim made by Bungie head Pete Parsons, who earlier announced the success of The Final Shape.
Additionally, one former Bungie employee told Totilo that the studio would have gone bankrupt if it hadn't been acquired by Sony in 2022.