The job cut will impact 8 percent of the division’s global workforce.

Sony also announced it will shut down its London Studio in the UK.

Jim Ryan, President & CEO, Sony Interactive Entertainment, said in a statement: "We have made the extremely hard decision to announce our plan to commence a reduction of our overall headcount globally by about 8% or about 900 people, subject to local law and consultation processes."

"Employees across the globe, including our studios, are impacted,"  Jim Ryan said.

"We need to deliver on expectations from developers and gamers and continue to propel future technology in gaming, so we took a step back to ensure we are set up to continue bringing the best gaming experiences to the community," Ryan said.

After announcing its layoff plan, the company said some Play Station Games will also be cancelled.

Hermen Hulst, Head of PlayStation Studios, said in a separate post: "I am deeply saddened to see talented individuals leave the company. I have so much admiration, appreciation and respect for their work. "

"We looked at our studios and our portfolio, evaluating projects in various stages of development, and have decided that some of those projects will not move forward," read the post.