Bungie, the studio behind the loot shooter Destiny 2, has laid off approximately 100 employees this week, which corresponds to about 8% of its workforce. This decision was made after serious warnings from management, as the shooter has significantly lost popularity.
This is why so many Bungie employees were fired: In recent years, many players have loved Destiny 2, the FPS loot shooter from Bungie. However, there have been signs of a decline in the once vibrant hype for some time now. This led to the difficult decision by management to proceed with layoffs this week.
Thus, they informed the workforce of the changes after reports from the business site Bloomberg:
- Two weeks ago, executives from the Sony-owned developer informed employees at a meeting that this year’s revenue was 45% below the expected results.
- As a consequence, the release of the upcoming DLC “The Final Shape” is to be postponed from February to June 2024. The statement comes from sources who reported to Jason Schreier from Bloomberg. They wanted to remain anonymous.
- According to these employees, it was also communicated to them at this meeting that the mood among Destiny 2 players has reached “a historic low“.
With the delay of the DLC release, Bungie employees receive more time for development, and thus the ability to improve the product Destiny 2
.
CEO Pete Parsons is said to have remarked at the time: “To weather the storm, everyone must work together” and emphasized that the employees are also determined to do whatever is necessary to boost revenue again.
The Final Shape of Destiny 2, the last DLC of the Light and Darkness saga, almost prophetically stands for the “beginning of the end”. Even though Bungie does not want to let it come to that.
The layoffs came as a surprise: On Monday morning, the situation worsened when many Bungie employees were unexpectedly invited to 15-minute meetings with management. During these meetings, they were informed of their layoffs and the upcoming round of dismissals.
Bungie’s revenues were 45% below projections
This is the current state of the loot shooter: The expansion “Lightfall” received very poor reviews from players. Players were dissatisfied with the story and the game itself.
Many long-time guardians were no longer interested in pre-ordering the last DLC of the once popular video game. Although the latest expansion The Final Shape
has been well received by players, the feedback is still not outstanding, as Bloomberg reports:
- The decision for the layoffs was thus made after grim warnings from management about a substantial decline in the popularity of Destiny 2.
- In total, 8% of the workforce was laid off to respond to the challenges of dwindling interest.
Some players had canceled their pre-orders and preferred to experience the ending on YouTube rather than playing themselves.
Layoffs are part of a larger savings initiative: The layoffs are according to the magazine IGN mainly due to the poor performance of Destiny 2 in the last year and the “lower than expected pre-orders“.
In conversations with some current and former employees, it was also confirmed that Bungie has taken full responsibility for the layoffs instead of blaming the parent company Sony.
- The developer has also taken further steps to mitigate the financial impact of the significant decline in popularity of Destiny 2.
- Reports indicate that costs such as travel have been reduced, and salary as well as hiring freezes have been implemented.
- The laid-off former employees also received severance pay for at least three months and COBRA health benefits (Consolidated Omnibus Budget Reconciliation Act). However, other company benefits were terminated immediately.
The remaining employees of the developer were informed that the affected positions in the areas of communication, PR, support, and sound design, which had to be eliminated, would now be outsourced to external companies.
Destiny 2 is still not completely dead
This is what happens next: Despite the difficulties, it should be noted that Bungie and Destiny 2 are not disappearing anytime soon.
CEO Pete Parsons has informed the remaining employees that the company has retained “the right people” to continue working on the space shooter in the future, as reported by IGN.
Bungie will continue to support Destiny 2 and develop new content to engage remaining players and perhaps attract new ones. The industry is highly competitive, and adaptability is vital for survival.
Industry analyst Doug Creutz from TD Cowen has also noted regarding the situation, “that these recent events [at Bungie] indicate signs of a restructuring at PlayStation.” The layoffs are likely part of Sony-PlayStation’s current cost-saving initiative.
How do you evaluate the decision to lay off employees due to the decline in popularity of Destiny 2? Positive or negative? Did you expect this development or not? And how do you feel about Destiny 2 now? Feel free to share your opinion with the community in the comments.
With the layoffs, Bungie has also let go of the most famous composer at Destiny: Destiny 2: Bungie lays off many employees, including the beloved composer – “The Beginning of the End”
Industry analyst Doug Creutz from TD Cowen has also noted regarding the situation, “that these recent events [at Bungie] indicate signs of a restructuring at PlayStation.” The layoffs are likely part of Sony-PlayStation’s current cost-saving initiative.
How do you evaluate the decision to lay off employees due to the decline in popularity of Destiny 2? Positive or negative? Did you expect this development or not? And how do you feel about Destiny 2 now? Feel free to share your opinion with the community in the comments.
With the layoffs, Bungie has also let go of the most famous composer at Destiny: Destiny 2: Bungie lays off many employees, including the beloved composer – “The Beginning of the End”
