Sony Interactive Entertainment plans to lay off 900 employees, affecting 8% of its workforce.

The layoffs will result in the closure of Sony’s London Studio and impact other studios, including Insomniac Games and Naughty Dog.

The restructuring is attributed to a post-pandemic decrease in demand for video games and aims to streamline resources for future success.

The tech industry downturn is part of a larger trend as consumer interest in stay-at-home entertainment wanes.

Sony anticipates a decline in PlayStation 5 sales and has no major franchise titles slated for release in the coming fiscal year.

The company's CEO, Jim Ryan, will be retiring in March, with the COO and CFO to serve as interim leaders.

Affected employees will receive severance packages and career support services.