Bungie’s mass layoffs were their decision rather than Sony’s according to reports

Bungie’s mass layoffs have hit the industry hard, with many now looking for jobs in the wake of the company letting go of a large portion of its staff. According to a report from Paul Tassi, these layoffs were Bungie’s decision rather than Sony’s.

It’s been a tough year for the games industry. While the year has seen some of gaming’s biggest-ever successes and triumphs in the form of GOTY contenders like Alan Wake 2, Baldur’s Gate 3, Tears of the Kingdom, & many more titles, it’s also been a year of rampant layoffs and studio closures.

From the shuttering of iconic game studios like Volition to Epic Games making massive cuts across all workforces under their banner, many companies within the industry have chosen to downsize or close outright.

Bungie is the latest studio to lay off a large portion of their staff, letting go of dozens of employees. And, according to a source close with Forbes’ Paul Tassi, the layoffs were a direct decision of Bungie’s management rather than being something Sony pushed for.

Bungie’s layoffs were reportedly carried out by their own management

With the recent Bungie layoffs, both the Final Shape expansion and Marathon have been delayed, pushing their release dates into Sony’s next fiscal year.

In the aftermath of the layoffs, speculation ran wild that the decision to downsize the studio and delay their games may have been direct from Sony. However, a recent report indicates otherwise.

Forbes’ Paul Tassi spoke with a source that claimed the layoffs were carried out by Bungie’s management directly rather than from any outside meddling from Sony, and that the way in which they were laid off may have kept employees from taking advantage of employment benefits.

The source claimed that this was “not about Sony replacing Bungie’s employees with their own people,” and that the manner in which these employees were let go left them out to dry.

“Many employee benefits (though not health insurance), only last until the end of the month if you’re let go. Laying people off on the 30th means a single additional day of coverage.”

What’s more, the stocks many employees had with Bungie were unvested as a result of the company being purchased by Sony. With the way they were let go, it’s likely that these unvested stocks will never return to their original holders who no longer work at Bungie.

“These shares would be received based on staying with the company for a certain number of years following the sale. But those shares revert to Bungie if you leave, even if you’re fired, which is what’s happening now to many of those affected.”

Essentially, this means that those let go from the company lose their part of ownership over that company and have no opportunity to either sell it or hold on to their investment.

These reports bring a new layer of context to Bungie CEO Pete Parsons’s message claiming that he’d recommend everyone fired. If this report is true, that would mean he made that recommendation despite being the part of the decision for these employees to be let go.