Sony Interactive Entertainment confirmed significant layoffs at its subsidiary studio, Bungie.
The workforce reduction eliminates most of the Destiny team and several developers for the upcoming game, Marathon.
Bungie attributed the cuts to Destiny 2 falling short of expectations over the past several years.
The studio stated it cannot maintain its current size following the release of final content updates and the transition to early-stage projects.
PlayStation CEO Hermen Hulst described the move as necessary to align resources with current priorities.