Sony has confirmed an unknown number of layoffs affecting one of flagship studios, Sony Santa Monica.
"SCEA can confirm that we have completed a reduction in workforce at Santa Monica Studio," confirmed the company in a statement to IGN.
"This is a result of a cycle of resource re-alignment against priority growth areas within SCE WWS," Sony added.
"We do not take these decisions lightly. However, sometimes it is necessary to make changes to better serve the future projects of the studio. We have offered outplacement services and severance packages to ease transition for those impacted."
The extent of the cuts is unclear, but IGN reports "indications" that the studio has been forced to cancel one of its in-development projects.
The wholly-owned Sony studio is best known for its work on the long-running God of War series.
However, it also operates as a key collaborator with other studios on a number of high-profile PlayStation games, including Flower, Journey, PlayStation All-Stars Battle Royale, Starhawk, Twisted Metal and the PixelJunk series.
Sony Santa Monica is said to be among the studios working on "unannounced PS4 titles" as teased by Sony itself in August 2013.