Bungie has announced significant layoffs, cutting 220 employees, which represents approximately 17% of its workforce, as the company integrates into Sony and faces rising development costs.

CEO Pete Parsons acknowledged that the company's ambition to develop multiple game franchises stretched its resources too thin, leading to financial difficulties and a 'quality miss' with the Destiny 2 expansion, Lightfall.

The company has been struggling financially, running in the red and exceeding its financial safety margins, which ultimately forced the layoffs.

Despite efforts to avoid layoffs, Bungie had to change its course due to these financial challenges, which have been exacerbated by a decline in player retention and revenue.

Reports indicate that Destiny 2 has experienced a 45% drop in player numbers and revenue compared to projections, further complicating the company's financial situation.

Many affected employees learned about their layoffs through a public announcement, highlighting a significant communication gap from management.

Former community manager Dylan Gafner described the layoffs as 'inexcusable' and called for accountability from Bungie's leadership.

Calls for Parsons to step down have intensified, particularly in light of his personal spending on luxury items, including classic cars, during a time of company layoffs.

In response to the layoffs, Bungie plans to maintain open communication with remaining employees through meetings and support sessions as they navigate these changes.

This ongoing situation has prompted widespread discussion within the gaming community, with further updates expected as Bungie seeks to stabilize its operations.