Sony has announced it will lay off 8% of PlayStation employees globally, amounting to approximately 900 people.

In addition to cuts in the US and Japan, the gaming giant said this would mean closing PlayStation's London Studio entirely.

In a blog post sharing an email sent to employees, boss Jim Ryan called the move "sad news" and said it was "a difficult day at our company".

"We have concluded that tough decisions have become inevitable," he said.

"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."

The cuts come a month after rival Microsoft revealed plans to lay off 1,900 people in its gaming division, which included those at recently acquired Activision-Blizzard.

"Sony is one of the big pillars of UK game development culture so it's massive to see the legendary Sony London studio close in particular," said Halli Bjornsson, head of UK developer Lockwood Publishing.

"It's a challenging time for our industry as it continues to go through major changes.

"However, UK games talent and heritage is world-class, and if we continue to foster it, we'll rebound and be in a good place to build upon the opportunities that are on the horizon."