These lay-offs will affect “every level” of Bungie, including executive and senior leader roles. Laid-off staff will be given a “generous exit package, including severance, bonus, and health coverage.”

Bungie is also deepening its integration with Sony Interactive Entertainment, integrating 155 roles, or 12 percent of its workforce, into Sony Interactive Entertainment over the next few quarters. According to Parsons, Sony Interactive Entertainment “worked tirelessly” with Bungie to identify roles for as many people as possible that would have otherwise been affected by the lay-offs.

As part of its deepened integration with Sony Interactive Entertainment, one of Bungie’s incubation projects—an action game set in a new science-fantasy universe—will be spun out from Bungie and continue development at a newly formed studio within PlayStation Studios.