Bungie has started laying off staff after Destiny 2's final update. The studio cited an internal reorganization and said it could not sustain its former size despite continued Marathon support through at least the end of 2026. Future projects remain in early incubation.

Even as it maintains support for the extraction shooter Marathon, which will receive fresh content at least through the end of 2026, Bungie determined it could not sustain operations at its former scale.
While these changes are necessary to best position the studio now and for the future, that does not lessen the difficulty of this moment or the impact it has on those affected.
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Glen Schofield, creator of Dead Space and co-founder of Sledgehammer Games, has retired from day-to-day game development after 35 years. His emotional video reflects on industry talent, personal thanks to fans and colleagues, and an optimistic outlook despite recent setbacks at Striking Distance Studios.
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