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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Bungie has published a roadmap for Marathon covering updates from October 2026 to March 2027 that expand game modes and player options. The changes aim to support different playstyles while preserving the core PvEvP experience.
Bungie will restore vaulted campaigns, destinations, and raids to Destiny 2 as the first step toward preserving the franchise and building a stronger long-term future. The reversal follows widespread fan backlash after the game’s final major update with the Monuments of Triumph.
Xbox confirmed it is eliminating 268 roles across Halo Studios, other first-party studios, and the XGS management layer, and is reorganizing studios so Activision develops the next Halo while Obsidian moves under Bethesda. Official Xbox Wire says the company is roughly three-quarters through its previously announced 3,200-role restructuring.
id Software has laid off roughly 50 percent of its staff, or about 95 employees, as part of Microsoft's Xbox layoffs. The reductions hit on the day of a major Doom expansion release and come as ZeniMax shifts focus to its biggest franchises, raising concerns about future game quality and release timelines.
Obsidian Entertainment lost roughly 25 percent of its staff, or 60-70 people, in Xbox's July 6, 2026 layoffs that cut 1,600 roles immediately. The departures include senior talent across all disciplines and leave the future of projects beyond Grounded 2 and The Outer Worlds 2 DLC uncertain.
