Bungie, the developer behind Halo and Destiny, is facing intense backlash following significant layoffs and a deeper integration with Sony Interactive Entertainment. CEO Pete Parsons announced the dismissal of approximately 220 employees – roughly 17% of the workforce – citing rising development costs, industry shifts, and economic challenges. This decision, communicated via letter, impacted all levels of the company, including executive and senior leadership. While severance packages were offered, the timing, particularly following the successful launch of The Final Shape, has fueled widespread criticism.

Parsons attributed the layoffs to overambitious expansion into multiple game franchises, leading to financial instability. This necessitated a restructuring focused solely on Destiny and Marathon, effectively shelving other projects.

The acquisition by Sony in 2022 initially promised operational independence for Bungie, contingent on performance metrics. Failure to meet these targets has resulted in increased integration with PlayStation Studios, with 155 roles transitioning to SIE over the coming quarters. One Bungie incubation project, a new science-fantasy action game, will become a separate PlayStation Studios entity. This tighter integration with Sony, while potentially offering stability, marks a departure from Bungie's independent history since its separation from Microsoft in 2007. Sony's Hermen Hulst will likely play a more significant role in Bungie's future direction.

The layoffs have sparked outrage among former and current employees, with many expressing their anger and disillusionment on social media. Criticisms focused on the perceived lack of accountability at the leadership level, particularly given the continued success of Destiny 2. The community also voiced its disapproval, with prominent content creators calling for leadership changes and criticizing the studio's handling of the situation.

Further fueling the controversy are reports of CEO Pete Parsons' significant spending on luxury vehicles, totaling over $2.3 million since late 2022, including purchases made shortly before and after the layoff announcements. This spending, juxtaposed against the layoffs and lack of salary reductions for senior leadership, has intensified the negative reaction. Former employees have publicly expressed their anger and feelings of betrayal. The lack of apparent cost-cutting measures by senior management further compounds the community's and employees' dissatisfaction. This situation highlights a significant disconnect between the leadership's actions and the company's stated financial difficulties.