Sony Corp.-owned video game company Bungie said Wednesday it would lay off 17% of its workforce — or 220 people — amid economic difficulties in the gaming industry.

The Bellevue, Wash., firm said the layoffs will affect every level of the company, including executives and senior leadership. The company said it will offer severance, bonus and healthcare coverage to affected employees.

“As we’ve navigated the broader economic realities over the last year, and after exhausting all other mitigation options, this has become a necessary decision to refocus our studio and our business with more realistic goals and viable financials,” Bungie Chief Executive Pete Parsons said in a post on the company website.

The “Destiny 2” and “Halo” creator had rapidly expanded while trying to work on games from three separate video game franchises. Sony, the PlayStation maker, acquired the company in 2022. Bungie was founded in 1991.

But by 2023, as the economy cooled, the video game industry started to course correct after its massive expansion during the pandemic. Bungie, in particular, also faced a “quality miss” with its “Destiny 2: Lightfall” game, Parsons said.

“We were overly ambitious, our financial safety margins were subsequently exceeded, and we began running in the red,” he said in the post.

The company plans to rely more heavily on its parent company going forward. Parsons said about 12% of its jobs, or 155 roles, will be integrated into Sony Interactive Entertainment over the next few quarters, a move that reduced the number of layoffs. The company will also spin off a new “science-fantasy” action game into its own studio under PlayStation Studios to allow further development, Parsons said.

Bungie isn’t the only video game company that’s faced layoffs in the last two years. Last year, at least 6,500 workers worldwide were laid off, according to a Times analysis, including hundreds at California-based companies like Unity and Riot Games.

Walt Disney Co.’s television division is laying off about 2% of its workforce, or 140 people, as the Burbank media and entertainment giant continues a company-wide cost-cutting plan.

The cuts at Disney Entertainment Television will primarily affect National Geographic, Freeform and local-owned television stations, as well as marketing and publicity teams, according to a person familiar with the matter who was not authorized to comment publicly.

National Geographic, in particular, will see a 13% cut. No teams are being eliminated, the person said. The famous brand became a part of Disney with the $71.3-billion acquisition of 21st Century Fox entertainment assets in 2019.

The cuts come as Disney continues to cut costs in an attempt to save money and stem losses from its streaming business. Last year, Chief Executive Bob Iger said the company would lay off 7,000 people as part of a $5.5-billion cost-cutting plan.

Those targets eventually swelled to $7.5 billion in savings and 8,000 eliminated roles.

The company overextended itself during the streaming wars in an effort to compete with Netflix by building up Disney+ and Hulu.

Disney faced intense pressure from Wall Street in the form of activist investor Nelson Peltz, who demanded a realistic path to profitability from the streaming business and was seeking a board seat in order to influence company strategy.

Peltz ended up losing his proxy campaign in a resounding shareholder vote.

Disney’s television operations are run by Dana Walden, the company’s entertainment co-chair, who joined as part of the Fox merger. Its key shows include FX’s “The Bear” and “Shōgun,” Hulu’s “Only Murders in the Building” and ABC’s “Abbott Elementary” and “9-1-1.” The company is coming off of a successful Emmy nominations run, with 183 nods for its programming.

FX was the second-most-nominated network behind Netflix, beating Emmy stalwart HBO/Max.

In May, Disney-owned computer animation studio Pixar laid off 14% of its staff, or 175 employees, as part of that effort. The cuts came as the studio planned to cut back on the number of streaming series it produces.