Bungie’s Struggle: A Look at the Recent Layoffs and Cost-Cutting Measures
Bungie, a well-known video game company, recently laid off about 100 of its 1,200 employees. The layoffs were part of a series of cost-cutting measures that have affected the company. It appears that the layoffs and other measures were a result of Bungie’s struggle to avoid a full acquisition by Sony.
Bungie is currently a fully independent subsidiary of Sony, but its board of directors has been divided since the acquisition in July 2022. The board is split between representatives from Sony and Bungie, with the tie-breaking vote held by Bungie’s CEO, Pete Parsons. However, there are indications that this power sharing might not last forever.
Leaders at Bungie have hinted that the current split board structure is contingent on Bungie meeting certain financial goals. If Bungie misses its revenue goals by too large an amount, Sony can dissolve the existing board and take full control of the company. With the Destiny 2 Final Form expansion delayed and Bungie investing heavily in Marathon, it seems that Bungie is struggling to meet the goals necessary to maintain its independence.
In addition to the layoffs, Bungie has implemented several other cost-cutting measures, including a hiring freeze, reduced travel budgets, and the elimination of various employee benefits and morale events. These changes have led to a significant decline in morale within the company.
Employees have expressed frustration and sadness over the recent layoffs and cost-cutting measures. They feel that the company’s culture, which was once known for being people-oriented, is being torn apart by the same leaders who promoted it for so long. Many employees are concerned about the future of the company and fear that more layoffs may be on the horizon.
Furthermore, there are concerns about a broader movement toward outsourcing at Bungie. Several employees have heard about plans to increase outsourcing, particularly in the quality control department. This has led to fears that the studio’s internal testing system, which has been a source of pride for years, is on the way out.
The recent layoffs have also affected well-liked community leaders within the studio, including members of Bungie’s development and innovation clubs. There are fears that these clubs may be at risk of closure as a result of the layoffs.
Overall, the recent developments at Bungie have raised concerns among employees about the future of the company. Many feel that the company’s culture and values are being eroded, and they are worried about the impact of the recent layoffs and cost-cutting measures on the studio’s future.
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