Video game developer Bungie, which is owned by Sony ( SNEJF ) , has just made a major change that is sparking backlash on social media.
The company, which has developed popular games such as “Destiny” and “Halo,” just eliminated 220 job roles within the company due to financial difficulties, shrinking its workforce by 17%.
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“I'm sharing with all of you some of the most difficult changes we’ve ever had to make as a studio,” wrote Bungie CEO Pete Parsons in a memo on July 31. “Due to rising costs of development and industry shifts as well as enduring economic conditions, it has become clear that we need to make substantial changes to our cost structure and focus development efforts entirely on Destiny and Marathon.”
Parsons stated that the decision came after the company rapidly expanded its talent during a “broad economic slowdown” that caused a “sharp downturn” in the gaming industry. He claimed that the move was “necessary” to make after the company exhausted “other mitigation options.”
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“We were overly ambitious, our financial safety margins were subsequently exceeded, and we began running in the red,” said Parsons in the memo. “After this new trajectory became clear, we knew we had to change our course and speed, and we did everything we could to avoid today’s outcome. Even with exhaustive efforts undertaken across our leadership and product teams to resolve our financial challenges, these steps were simply not enough.”
Bungie faces sharp criticism for layoffs
The layoffs follow Bungie’s job releases in October , which resulted in 100 staff members being let go. The move came after Sony paid $1.2 billion for staff retention after it acquired Bungie for $3.7 billion in 2022.
Bungie’s latest announcement sparked outrage on social media as some users claimed that leadership at the company should face consequences for failing to prevent the layoffs.
Parsons also faced backlash after social media users discovered what appears to be the CEO’s account on a bidding website called Bring a Trailer that revealed Parsons spent $2.4 million on classic cars since September 2022.
One employee who was let go from the company alleges that Parsons even invited her to see his car collection two days before she was laid off.
Bungie’s layoffs come at a time when the tech industry is cutting its workforces at a rapid level. So far in 2024, 384 tech companies have laid off employees, resulting in 124,517 people losing their jobs, according to data from Layoffs.fyi.
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