In an internal town hall meeting addressing layoffs, Bungie CEO Pete Parsons attributed the cut downs to the underperformance of their videogame, Destiny 2, and lower-than-expected preorders for their upcoming expansion, The Final Shape. Bungie took responsibility for the layoffs rather than blaming parent company Sony. It is estimated that around 100 employees were impacted across departments including community team, art, engineering, recruiting, legal, audio, and QA.

The layoffs had an impact on both Destiny 2 and Marathon teams, including key members of the company’s diversity committee and accessibility club. Affected employees were provided three months of severance and COBRA health benefits, but other company benefits were terminated immediately. Reports indicate that these layoffs were not unforeseen, with employee sentiment at an all-time low and numerous red flags raised to the management over recent months.

The layoff announcement was particularly frustrating for many, considering the company's recent completion of a new, sizable headquarters in Bellevue, Washington. Critics also feel that the layoffs contradict promises made during Sony’s 2022 acquisition of Bungie, when a significant portion of the $4 billion deal was allegedly devoted to staff retention. Despite the financial and structural changes at Bungie, the launch of the long-awaited Marathon has now been delayed until 2025.