In a shocking move that's left the gaming community reeling, Bungie, the legendary developer behind iconic franchises like Destiny and Halo, has slashed its workforce by nearly 300 employees at its Bellevue, Washington headquarters. The layoffs, reported in a Worker Adjustment and Retraining Notification (WARN) notice issued by Sony, affect a whopping 292 staff members with a formal separation date set for July 9. This is Bungie's third round of layoffs in three years, a stark contrast to its heyday when it employed over 1000 people. The cuts have been dubbed a "bloodbath" by local press, hitting most of the Destiny team and some Marathon team members. Hermen Hulst, CEO, Studio Business Group, Sony Interactive Entertainment, described the decision as "difficult" and "painful," but "necessary to align the studio’s resources with its current priorities and long-term goals." The layoffs follow the recent ending of new content for Destiny 2 and the underperformance of Marathon, a hardcore extraction shooter that has struggled to attract players. Sony has promised its commitment to Marathon, with the team also said to be working on "incubation efforts for future projects." The WARN notice also reveals staff across all departments were hit, including artists and technical animators, audio leads and sound designers, engineers, producers, systems designers, and integrated Sony support teams that manage day-to-day Bungie infrastructure. Notable casualties include Bungie studio head Justin Truman and VP of Operations, Poria Torkan, who has reportedly taken charge of the studio. There's also speculation about the departure of Bungie co-founder and Halo and Destiny creator Jason Jones, who held the title of Chief Vision Officer in an official Destiny 2 video released in 2021. If Jones has indeed left Bungie, it would mark a significant end of an era for the studio. Bungie's financial struggles are nothing new, with the studio reportedly on the brink of closure before Sony bought it back in 2022 for $3.6 billion. Sony recently reported a $765 million impairment loss due to underperformance of Bungie specifically. The issues with Destiny 2 reportedly began around the time of last summer's Edge of Fate expansion, which was said to have underperformed. The decision to pull the plug on Destiny 2's new content was allegedly made earlier this year after it was decided not to relaunch the franchise as "Destiny Infinity." Despite these setbacks, there's no confirmation of Destiny 3 being scrapped, with cost being cited as the key issue. Destiny 2 launched on PlayStation 4, Xbox One, and PC in September 2017, but behind-the-scenes tension between Bungie and Activision led to their parting ways in January 2019. With Destiny in its own hands, Bungie self-published the game, but it couldn't escape financial troubles and layoffs as Destiny 2 expansions failed to hit the mark and the player base dwindled. Extraction shooter Marathon launched early March, with a reported budget of over $250 million, but it too has failed to meet sales expectations according to analysts. This latest round of layoffs at Bungie is undoubtedly a significant blow for the gaming industry and its fans. The future of the studio and its beloved franchises remains uncertain, but one thing's for sure - we're witnessing the beginning of a new era for Bungie.