Bungie, Sony Slash Jobs Despite CEO Splurge

Bungie is experiencing major restructuring with widespread layoffs and increased integration into Sony Interactive Entertainment. This report covers employee reactions, executive spending controversies, and what lies ahead for the renowned studio.

Bungie Announces Mass Layoffs Amid Economic Headwinds

CEO Pete Parsons Announces Workforce Reductions

Bungie CEO Pete Parsons recently revealed extensive organizational changes driven by rising costs, industry transformation, and persistent economic pressures. The restructuring eliminates 220 positions - approximately 17% of Bungie's total workforce - as part of efforts to concentrate resources on core projects Destiny and Marathon.

The letter explained that the reductions would affect all organizational levels, including senior leadership positions. Parsons pledged support packages featuring severance, bonuses, and continued healthcare benefits for departing employees.

The announcement followed Bungie's five-year strategy to develop multiple global franchises simultaneously, which led to overextension across incubation projects and financial instability. Despite mitigation attempts, layoffs became necessary to stabilize operations.

Parsons concluded by emphasizing continued commitment to quality experiences with the remaining 850 employees while supporting affected staff during transition.

Organizational Shift Under PlayStation Studios

The Sony-owned studio faces diminished autonomy as it integrates deeper with PlayStation Studios. Though Sony's 2022 acquisition guaranteed operational independence contingent on performance targets, unmet benchmarks have prompted structural changes.

SIE CEO Hermen Hulst will gradually assume oversight responsibilities. The transition involves transferring 155 roles to SIE over subsequent quarters - a Bungie-initiated decision aimed at preserving expertise while downsizing.

Notably, one incubation project - an original sci-fi/fantasy action title - will become a separate studio under PlayStation Studios. This restructuring marks a departure from Bungie's stance as an independent developer since its Microsoft separation in 2007.

Workforce Reactions and Industry Response

The announcement sparked significant backlash from current and former employees across social media platforms.

Destiny 2 community lead Dylan Gafner labeled the layoffs "inexcusable," lamenting loss of top-tier talent while criticizing misplaced accountability. Technical UX designer Ash Duong highlighted contradictions between leadership praise and layoff decisions affecting critical personnel.

Criticism extended directly to CEO Parsons, with former social media lead Griffin Bennett stating "Pete is a joke," joined by former community manager Liana Ruppert calling for leadership change. Prominent Destiny creator MyNameIsByf criticized management decisions as reckless and damaging.

Executive Spending Controversy

Parsons reportedly spent over $2.3 million on luxury vehicles since late 2022, including acquisitions made around prior layoffs. Recent purchases include:

• $91,500 for 1961 Chevrolet Corvette (two months pre-layoffs)
• $205,000 for 1967 Jaguar XKE Series I (December 2022)
• $201,000 for 1971 Porsche 911S (November 2023)

Former Community Manager Sam Bartley publicly criticized Parsons' conduct: "You invited me to see your new cars TWO DAYS before laying me off." Notably, executive compensation reductions weren't reportedly considered despite workforce reductions.

The spending patterns contrasted with Parsons' statement about financial constraints, raising questions about priorities and personal versus corporate expenditures.