IGN recently interviewed Bungie employees after the studio laid off approximately 100 employees out of their total workforce of around 1,200. This decision was made due to the underperformance of the game Destiny 2, which fell short of expectations.
Currently, Bungie is considered an independent studio, but the terms of the acquisition have allowed them to maintain their autonomy as long as they continue to meet performance standards. If their performance declines, the acquiring company has the right to make changes (the current board consists of 3 Bungie representatives and 2 from the acquiring company).
With a significant decrease in Destiny 2’s player base, Bungie’s management became increasingly stressed and made the decision to lay off employees themselves. They reduced expenses and benefits, without involving the acquiring company in this round of layoffs.
As a result, employee morale has plummeted, especially among long-time employees who were let go. These individuals were significant contributors to the company. Furthermore, the management team has not provided any reassurance that there won’t be further layoffs in the future.
Bungie’s current solution is to focus on the development of Destiny 2: The Final Shape, which has been pushed back to be released in June 2024. They aim to deliver the best possible product and hope that players will return in a timely manner.
TLDR: Bungie laid off 100 employees due to the underperformance of Destiny 2. Despite being an independent studio, the acquiring company has the power to make changes if performance declines. The layoff decision was made solely by Bungie’s management, reducing expenses and benefits. This has negatively affected employee morale, and there is uncertainty about future layoffs. Bungie’s current strategy is to prioritize the development of Destiny 2: The Final Shape and hope for the timely return of players.
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