Bungie reportedly warned employees of “sharp drop” in Destiny 2 popularity prior to layoffs

Yesterday’s layoffs at Destiny 2 developer Bungie reportedly impacted 100 employees – approximately 8% of its 1,200-strong workforce – and occurred just weeks after management warned staff that revenue for the year was running significantly below expectations.

That’s according to Bloomberg, which reports Bungie employees were issued “dire management warnings” that revenue was 45 percent below projections just two weeks ago. The slump is said to be the result of a “sharp drop” in the popularity of Destiny 2, with Bungie CEO Pete Parsons having reportedly highlighted weak player retention at the time.

In that same meeting, according to Bloomberg sources in attendance, Parsons told employees that Destiny 2’s next expansion, The Final Shape – which concludes the game’s current Light and Darkness saga – was only getting “good” rather than “great” feedback. As such, management was planning to delay its release to improve the product.

Parsons is also said to have outlined cost-cutting measures during the meeting, alongside salary and hiring freezes, telling employees they would have to “work together to weather the storm”. However, a significant number of employees reportedly started their Monday morning yesterday with a mysterious 15-minute meeting placed in their schedule, where they would ultimatley be informed of their termination from the company.

Bloomberg, based on documentation reviewed by the publication, says around 8 percent – approximately 100 employees – were laid off, primarily from company’s support departments, including community management and publishing. All affected workers will reportedly receive at least three months of severance pay and three months of Bungie-paid COBRA health insurance, but additional benefits are said to have ended Monday.

Bloomberg says the layoffs are part of a “larger money-saving initiative” at PlayStation, which has also resulted in job cuts at Media Molecule, Naughty Dog, and other areas of the business.

Following the news of layoffs at Bungie, Parsons took to social media to call it a “sad day” for the studio. “What these exceptional individuals have contributed to our games and Bungie culture has been enormous and will continue to be a part of Bungie long into the future,” he wrote. “These are truly talented people.”