Bungie to sublease 211,000 square feet of Bellevue headquarters
The studio is downsizing its physical footprint following mass layoffs and a shift toward a digital-first work model.
Bungie is exploring options to sublease a significant portion of its Bellevue, Washington headquarters. The move signals a contraction of the studio's physical operations following a period of intense organizational turmoil.
The company has confirmed it is seeking to sublease 210,984 square feet of its campus, with the availability extending through September 30, 2035. According to a Bungie spokesperson, the decision reflects the team’s evolving workplace needs and the effectiveness of its remote collaboration, noting that the studio transitioned to a "digital-first" model several years ago.
A pattern of downsizing
This real estate retreat follows a series of aggressive workforce reductions. Since its acquisition by Sony in 2022 for between $3.6 billion and $3.7 billion, Bungie has undergone three rounds of layoffs in three years. Most recently, Washington State WARN notices confirmed that the studio laid off 292 workers in Bellevue in June 2026.
These cuts were driven by revenue for Destiny 2 falling below internal projections and a strategic decision to scale back various incubation projects. The studio has since shifted its primary focus toward the development of its upcoming title, Marathon. The Bellevue headquarters had been expanded in 2021 to accommodate a much larger workforce that the studio no longer employs.
Industry implications
Downsizing a specialized production facility of this scale suggests a retreat from the aggressive growth ambitions Bungie held prior to the Sony acquisition. The move indicates a transition into a leaner, more cautious operational phase. By shedding over 210,000 square feet of office space, Bungie is aligning its overhead with a reduced headcount and a permanent commitment to remote-centric operations.
Future outlook
While Bungie intends to maintain a physical presence in Bellevue, the scale of the sublease highlights the pressure currently facing the studio. With the end of regular development for Destiny 2, the company's stability is increasingly tied to the commercial success of Marathon. Observers will be watching to see if further operational cuts follow as the studio continues to integrate into Sony's broader corporate structure.