Bungie's recent mass layoffs, impacting approximately 17% of its workforce (220 employees), have sparked significant backlash from employees and the gaming community. CEO Pete Parsons cited rising development costs, industry shifts, and economic challenges as the reasons behind the job cuts, a decision impacting all levels of the company, including executive roles. Parsons' letter emphasized severance packages and continued support for departing employees. The layoffs follow the successful launch of Destiny 2: The Final Shape, adding to the controversy.

The restructuring also involves a deeper integration with PlayStation Studios, following Sony's 2022 acquisition of Bungie. While initially granted operational independence, Bungie's failure to meet performance metrics has resulted in a shift towards greater oversight from PlayStation CEO Hermen Hulst. This includes integrating 155 Bungie roles into SIE and the spin-off of an incubation project into a new PlayStation Studios subsidiary. This transition marks a significant departure from Bungie's independent history, established after its split from Microsoft.

The layoff announcement ignited a firestorm of criticism on social media. Former and current employees, including prominent figures like Dylan Gafner and Ash Duong, voiced outrage and disillusionment, highlighting the contradiction between professed employee value and the job cuts. Criticism also targeted Parsons, with calls for his resignation from former employees and community members alike. Content creator MyNameIsByf publicly criticized the leadership's decisions as reckless and detrimental to both employees and the Destiny franchise.

Fueling the outrage is the revelation of Parsons' substantial spending on luxury vehicles, exceeding $2.3 million since late 2022, including purchases made shortly before and after layoff announcements. This spending, juxtaposed against the layoffs and the CEO's statement regarding financial difficulties, has intensified the criticism and fueled accusations of a disconnect between leadership actions and the company's financial realities. Former employees, such as Sam Bartley, have publicly expressed their anger and frustration over this perceived hypocrisy. The lack of salary cuts or cost-saving measures from senior leadership further exacerbates the situation. The controversy underscores a significant crisis of confidence in Bungie's leadership and raises serious questions about the studio's future.