Bungie Devs Say Atmosphere Is ‘Soul-Crushing’ Amid Layoffs, Cuts, and Fear of Total Sony Takeover

06.12.2023 - 15:11 / ign.com / Hermen Hulst / Playstation Studios / Eric Lempel / Pete Parsons / Sony

One month after a major round of layoffs impacted roughly 100 Bungie employees of 1,200, those remaining at the Destiny developer say the cuts, as well as other cost-cutting measures, came alongside an apparent scramble by studio leadership to avoid a total Sony takeover.

As it currently stands, Bungie is (on paper) a fully independent subsidiary of Sony. But its board of directors has been divided since the takeover in July of 2022. Among its current members are PlayStation Studios head Hermen Hulst, Sony senior VP Eric Lempel, Bungie co-founder Jason Jones, Bungie CTO Luis Villegas, and Bungie CEO Pete Parsons. The board as a whole is split between Sony and Bungie representatives, with Parsons serving as a tiebreaker vote. But speaking to IGN under condition of anonymity, multiple current and former Bungie employees described a department meeting that took place shortly after the layoffs, in which leaders hinted that this shared power may not last forever.

Sony did not respond to IGN’s request for comment on this piece. Bungie declined to comment.

While the exact details of Sony’s deal to acquire Bungie remain unknown to the public or employees, sources say they were told by leaders that the current split board structure is contingent on Bungie meeting certain financial goals. If Bungie falls short of its revenue goals by too great an amount, Sony is allowed to dissolve the existing board and take full control of the company. And with Destiny 2 expansion The Final Shape delayed into the next fiscal year and Bungie still investing heavily on Marathon, many employees understand that Bungie is struggling to meet the necessary targets to keep its last vestige of freedom. Such a takeover wouldn’t necessarily be shocking given its 2022 acquisition, but it would nevertheless be a stunning development for a company that has historically prided itself on its independence.

It was with this threat looming that Bungie leadership - not Sony, according to Parsons - made the choice to lay off roughly 100 employees last month. But the cost-cutting at Bungie isn’t limited to just personnel. Multiple current employees confirmed to IGN that the company has implemented numerous other cost-cutting measures recently, including a studio-wide hiring freeze, reduced travel budgets, elimination of holiday bonuses, keeping its annual Bungie Day virtual, delaying its weeklong company “Pentathalon” event to next December, and reducing numerous morale events such as cooking and knitting classes from monthly to quarterly. Bungie is also pausing or fully ending benefits like annual employee compensation adjustments to meet market rates, its new hire lunch program, employee donation matching, its peer recognition program, and gift