Sony will close its London PlayStation studio in plans to axe 900 jobs.
The Japanese gaming juggernaut informed staff in an email that the studio was to be closed in the firm's proposals.
Job losses are also expected at Sony's Firesprite Studio in Liverpool while other UK workers in various positions are likely to be impacted by the cuts.
In an internal memo obtained by Bloomberg, Sony Interactive Entertainment's outgoing CEO Jim Ryan wrote: "Today, I am writing with sad news. Through discussions over the past few months about the evolving economic landscape, changes in the way we develop, distribute, and launch products, and ensuring our organization is future-ready in this rapidly changing industry, we have concluded that tough decisions have become inevitable.
"The leadership team and I made the incredibly difficult decision to restructure operations, which regrettably includes a reduction in our workforce impacting very talented individuals who have contributed to our success.
"After careful consideration and many leadership discussions over several months, it has become clear changes need to be made to continue to grow the business and develop the company. We had to step back, look at our business holistically, and move forward focusing on the long-term sustainability of the company and delivering the best experiences possible for our community.
"The goal is to streamline our resources to ensure our continued success and ability to deliver experiences gamers and creators have come to expect from us."
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