Bungie: the downfall of Destiny 2 was the reason for the layoffs

A report indicates that the company threatened with frozen salaries and contracts due to poor results

Bungie: the downfall of Destiny 2 was the reason for the layoffs

A report indicates that the company threatened with frozen salaries and contracts due to poor results

Bungie is in crisis, and although the company insists on keeping everything discreet, its current situation has spiraled out of control, and details have emerged through other sources. Yesterday, news broke about the staff cuts that affected legends of the studio who were part of the Halo and Destiny eras. Unfortunately, it seems that the situation is more complicated than expected.

Bungie laid off workers due to the financial decline of Destiny 2

A new report by Jason Schreier, a journalist from Bloomberg, revealed details of the crisis within Bungie, which has led to the layoffs of employees and the delay of the next expansion of Destiny 2, The Final Shape, and Marathon, their upcoming multiplayer proposal. According to the information, Bungie laid off 8% of its workforce, a little over 100 employees. However, this decision was surprising because the company announced it overnight after warning for weeks that the results were not as expected.

Revealing the details of the crisis at Bungie that caused layoffs and delays
Revealing the details of the crisis at Bungie that caused layoffs and delays

Bungie threatened with measures against salaries and contracts due to poor results

In this regard, internal sources indicate that Bungie informed its employees that the revenues from Destiny 2 were 45% below expectations due to a drop in user retention after the release of the Lightfall expansion.

Faced with this situation, Bungie threatened employees with salary and contract freezes, warning that they would have to work together to "weather the storm." Similarly, it is reported that the company told developers that the community's perception of The Final Shape was good but not excellent, so they would have to delay the expansion to improve the prior opinion. Unofficially, it is known that the next Destiny 2 DLC will not arrive until June 2024, and Marathon is pushed to 2025.

Ultimately, it seems that, in the absence of a concrete plan to address the crisis and under the financial pressure from Sony | PlayStation, Bungie decided to lay off more than 100 employees. The detail is that they found out in a matter of minutes, receiving a message for an urgent meeting in which they were informed that they would be laid off with a proposal of 3 months' salary and 3 months of insurance as severance.

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