Bungie employees describe ‘soul-crushing’ atmosphere after layoffs in new report

Destiny 2’s Season 23 started strong, featuring the new Warlord’s Ruin Dungeon and activities like The Coil. But beneath the surface, it’s possible Bungie and Destiny have received a blow that’s impossible to recover from.

A new report from IGN’s Rebekah Valentine alleges that the situation only worsens for the remaining employees at Bungie. Morale and company culture seem like they’re taking a backseat, in order to avoid something as drastic as a complete Sony takeover.

Following Bungie’s layoffs at the end of October, reports surfaced that the studio was drastically missing revenue targets. A Bloomberg report claimed the company would delay Destiny 2’s The Final Shape expansion in addition to the upcoming new title Marathon.

Bungie would confirm these delays shortly before Destiny 2 introduced the Season of the Wish. Now, IGN reports that employee morale is at an all-time low and that there’s a chance Sony could put a firmer hand on Bungie’s affairs.

IGN reports that since Bungie became a Sony subsidiary, it has operated with a split board of directors. While Bungie management makes up half of the board, there’s an indication that things can change. IGN’s sources allege leadership has stated that Sony can eliminate the existing board and seize control if Bungie underperforms. And with that knowledge in mind, this financial fear likely led to Bungie’s layoffs.

In addition to trimming staff, IGN reports that Bungie has implemented other strategies to save money. Hiring, holiday bonuses, competitive industry compensation adjustments, and donation matching reportedly all took a hit, just to name a few. Obviously, this has done little to improve the morale of the remaining employees after the layoffs. Many tell IGN they are understandably bitter after seeing their friends and coworkers coldly let go, and this just compounds frustrations.

While Bungie hopes to rebound from its financial losses, employees’ enthusiasm has essentially disappeared. IGN’s sources note that the in-studio atmosphere has been “soul-crushing.” A lot is riding on The Final Shape, and the team knows it, as one source tells IGN that they know the expansion needs to do well, or else they feel they’re “definitely looking at more layoffs.”

Another fear rising among studio staff is Bungie’s increasing reliance on outsourcing. IGN’s sources allege an uptick in conversations about outsourcing since just around the time of the layoffs. Though it’s standard enough throughout the game industry, Bungie has employed a sizable internal team for years. Now, employees have to worry about whether their job security is a worthwhile investment for Bungie. “Folks still there are very much feeling’ us vs them’ between leadership and workers,” an IGN source noted. “That trust has been eroded.”