Bungie lays off nearly 300 Bellevue employees after video game update falls short

June 26, 2026 - 05:53

Bungie, the Bellevue-based video game studio known for the Destiny franchise, laid off 292 employees on Thursday. The job cuts come shortly after the release of what the company described as the final major update for one of its flagship titles. In an internal memo, Bungie leadership acknowledged that the update did not meet financial expectations, forcing the studio to reduce its workforce.

The layoffs affect roughly 17 percent of the company's staff. Employees were notified during a morning meeting, and those impacted were offered severance packages and extended health benefits. Bungie's CEO stated that the decision was painful but necessary to ensure the studio's long-term survival. He also noted that the company would be shifting focus toward developing new intellectual property rather than continuing to support older franchises.

This is not the first round of cuts for Bungie. The studio laid off over 100 employees last year, citing similar struggles with post-launch content performance. Industry analysts point to a broader trend in the gaming sector, where even established studios are struggling to maintain revenue from live-service games. For the workers in Bellevue, the news adds to a growing list of tech layoffs that have hit the Seattle area hard over the past two years. Bungie has not announced any plans for further reductions at this time.