Sony recently disclosed that it would lay off 8% of its PlayStation staff worldwide, totaling over 900 individuals.
In addition to layoffs in the United States and Japan, the company announced that PlayStation's London Studio will be completely closed.
In a blog post that shared an email addressed to staff, manager Jim Ryan termed the decision "sad news" and said it was "a difficult day at our company."
"We have concluded that tough decisions have become inevitable," the manager stated.
"The leadership team and I made the incredibly tough decision to reorganize activities, which unfortunately involves a decrease in the number of employees, impacting very talented people who played a role in our company's success."
The layoffs come a month after competitor Microsoft announced intentions to lay off 1,900 people in its gaming team, including employees from newly acquired Activision-Blizzard.
"Sony is one of the big pillars of UK game development culture, so it's significant to see the renowned Sony London studio close in particular," said Halli Bjornsson, CEO of UK developer Lockwood Publishing.
"It's an uncertain period for our sector as it continues to go through tremendous changes." However, the UK's gaming talent and tradition are world-class, and if we keep nurturing them, we will recover and be in an excellent position to capitalize on the possibilities that lie ahead."
Sony's London Studio was established in 2002 by the merger of two existing London-based studios under the PlayStation identity.
Over the last two decades, it has produced various series, including the karaoke game SingStar and the 2000s football title This Is Football.
In the meantime, it developed virtual reality (VR) games exclusively for Sony's headset, such as VR Worlds and the well-received shooter Blood & Truth.
This article was originally published on the BBC.