Bellevue-based video game developer Bungie announced earlier this week that it will be laying off 220 employees, as the company undergoes “substantial changes” to its structure.

The layoffs will affect employees at every level of the company, including many executive and senior roles. In a blog post titled “The New Path for Bungie,” CEO Pete Parsons explained that “rising development costs and industry shifts” have necessitated significant adjustments to the company’s cost structure.

Moving forward, Bungie will focus its development efforts on its flagship franchise, Destiny, and the new PVP extraction shooter, Marathon. Parsons expressed his regret over the layoffs, stating, “Today we must say goodbye to incredible talent, colleagues, and friends. This will be a time of tremendous change for our studio.”

In addition to these layoffs, Bungie plans to increase its integration with Sony Interactive Entertainment, incorporating more than 150 roles into the Sony ecosystem. This strategic move aims to strengthen Bungie’s future projects through enhanced collaboration with Sony.

Affected employees will receive an exit package that includes severance pay, bonuses, and health coverage, according to the blog post.

These layoffs at Bungie are part of a broader trend in the gaming industry, where companies are adjusting to new economic realities. Over the past year, other major game developers with offices in western Washington, such as Unity, Xbox, and Epic Games, have also implemented significant workforce reductions.

The gaming industry faces evolving market demands and economic challenges, and companies are making strategic decisions to navigate these shifts. Bungie’s focus on key projects and deeper partnership with Sony aims to position the studio for long-term success despite the current difficulties.