United Kingdom, June 26 -- Bungie has announced significant job cuts as the studio begins a major restructuring following the release of Destiny 2's final content update.

In a statement issued to staff and the wider community, the PlayStation-owned developer confirmed it was reducing its workforce after concluding active development on its long-running online shooter.

While Bungie did not disclose how many employees were affected, multiple reports suggest between 40 and 55 per cent of the studio could be impacted, potentially amounting to several hundred layoffs.

The studio said: "With great sadness, we are announcing a reduction in force as we reorganise Bungie.

"As the leaders of Bungie, past and present, we recognise Destiny 2 fell...