Bungie is really putting on a show of “tightening the belt” this time around. The Destiny 2 and Marathon developer is now looking for tenants to sublet most of its headquarters in Bellevue, Washington — over 210,000 square feet of office space, with a lease running all the way to 2035. This office was only significantly expanded in 2021, when the company was still assuming continuous growth and multiple games being developed in parallel — now there’s just too much space.
From Big Expansion to Bare Hallways — Where Did Everyone Go?
The issue is that Bungie’s workforce has shrunk dramatically over the past few years. The company carried out layoffs in 2023, 2024, and 2026, with some teams transferred to PlayStation Studios. Headcount dropped from around 1,600 at its peak to fewer than 600 today. With Bungie officially ending development on Destiny 2, the studio clearly no longer needs this much physical office space to support its operations.
$3.6 Billion Acquisition Starts Showing Its Wounds
To make things more awkward, Sony acquired Bungie for $3.6 billion, hoping the studio behind Halo and Destiny would help establish PlayStation’s service game strategy. But with Destiny 2 underperforming in its later years and Marathon failing to become the second money-maker Sony imagined, Sony even recorded approximately $765 million in impairment related to Bungie assets in the fiscal year ending March 2026. The numbers don’t exactly paint a picture of “everything going according to plan.”
Bungie Isn’t Shutting Down
Of course, subletting office space doesn’t mean Bungie is preparing to close its doors. The company stated this relates to their “digital-first” work model and current operational needs, so it can’t be directly interpreted as the studio about to disappear. But the contrast between a 210,000 square foot headquarters once prepared for massive expansion, and now needing to rent out most of that space, is pretty stark. The company that once dreamed of running multiple projects simultaneously now finds itself streamlining dramatically — while hoping Marathon can still turn things around.