26th June 2026; 12:14 IST
Quick Answer: On June 25, 2026, Sony Interactive Entertainment and Bungie announced a major restructuring plan. The move introduces widespread layoffs affecting approximately 292 employees, the departure of studio head Justin Truman, and a leadership transition to former VP of Operations Poria Torkan. PlayStation Studios CEO Hermen Hulst cited a necessary realignment of resources following month-long reviews as Destiny 2 fell short of commercial expectations.
Just weeks after Destiny 2 transitioned into a permanent maintenance mode with its final "Monument of Triumph" live-service update, PlayStation Studios has announced a painful yet decisive restructuring of the legendary studio. A series of regulatory filings (WARN notices) in Washington State confirmed that 292 employees have been laid off at Bungie's Bellevue headquarters.
This workforce reduction affects multiple divisions. According to reports, the layoffs hit the main Destiny team hardest, but also impacted staff members on the highly anticipated extraction shooter Marathon and various support functions at Sony Interactive Entertainment (SIE).
PlayStation Studios CEO Hermen Hulst addressed the situation directly in an internal memo. According to Hulst, the decision was reached after months of intense discussions regarding the studio's development velocity, current budget overheads, and immediate strategic requirements.
Hulst explicitly noted that Destiny 2 had fallen short of commercial and engagement expectations over recent years, prompting Sony to reassess its investments. Despite exploring "multiple alternatives," including transferring employees to other divisions of SIE, layoffs became unavoidable to preserve the financial health of the studio.
Alongside the workforce reductions, a major change is taking place at the executive level. Justin Truman, who took over as the head of Bungie following the exit of long-time chief executive Pete Parsons, has stepped down.
Stepping into the spotlight to steer Bungie through this transition is Poria Torkan, who previously served as the Vice President of Operations at the studio. Torkan faces the immediate task of stabilizing studio morale and streamlining the development of future projects.
While the news has shaken the community and industry alike, Sony has attempted to reassure fans about its upcoming slate. Hulst emphasized that the development of Marathon, Bungie's upcoming sci-fi extraction shooter, remains a top priority for PlayStation Studios. The remaining team members are fully focused on preparing the game for its upcoming testing phases and release.
Additionally, early incubation projects at the studio are still active, albeit with more focused scope and strictly monitored budgets. It is clear that Sony is moving away from the sprawling, unchecked live-service model of the early 2020s toward a lean, highly targeted production pipeline.
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