The video game industry has reportedly reached 3,700 layoffs in 2026, while Bungie is bracing for major cuts after Destiny 2's final update.
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The video game industry has reportedly reached 3,700 in 2026, showing that the is still not over. After years of cuts at major publishers, platform holders and support studios, the latest focus is Bungie, the Sony-owned developer behind Destiny and Marathon.
Reports say Bungie is after releasing Destiny 2’s final update, Monument of Triumph. The studio is expected to shift from active development to and server maintenance. That leaves many employees in a difficult position because Bungie does not appear to have a large ready to absorb them.
The possible scale of the cuts is alarming. Some reports suggest hundreds of jobs could be at risk, with also expected during the summer. Bungie has already been through layoffs in 2023 and 2024, and Sony has been reducing the studio’s independence as it folds more operations into PlayStation.
The situation reflects a wider problem across gaming. Companies expanded during the pandemic boom, then faced slower growth, higher costs and fewer obvious hits. Microsoft, Xbox studios, ZeniMax teams, Ubisoft and other major groups have all been linked to , closures or job losses during the broader downturn.
For workers, the pattern is exhausting. A successful live-service game no longer guarantees stability if revenue falls, future projects stall or corporate owners demand a reset. Developers can spend years building a franchise and still face layoffs when the business model changes.
For players, the cuts raise questions about support and trust. If teams shrink, updates slow down, quality assurance gets thinner and future games may be delayed or cancelled. The 2026 tally is lower than the worst moments of 2023 and 2024, but Bungie’s reported situation shows that the industry has not yet found a .
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