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Sony's Bungie laid off 220 employees this week, reducing its workforce from 1,300 to about 850. The cuts included top executives and key teams, marking the second round of layoffs in less than a year due to financial struggles and missed revenue targets. Bungie, facing challenges with its flagship game Destiny 2 and other projects, canceled the incubation project Payback to focus on imminent releases. The underperformance of the Lightfall expansion and the Marathon game exacerbated the issues. Following its $3.6 billion acquisition by Sony in early 2022, Bungie expanded rapidly, but the post-pandemic gaming surge waned, leading to financial strain and a 45% revenue shortfall last year. Criticism was directed at CEO Pete Parsons for overly optimistic communication and lack of accountability. In response, Bungie is shifting its strategy for Destiny 2 from regular paid expansions to smaller, free content updates to retain and attract players. With key executives like Luke Smith and Mark Noseworthy departing, Bungie is undergoing internal restructuring. Laid-off staff will receive severance packages and health benefits, but unvested stock from the Sony acquisition will be forfeited. Despite these challenges, some staff are hopeful about the future under new leadership, with plans to improve onboarding for Destiny 2 and introduce new storylines and content to attract new players.