Sony Playstation headquarters in London, United Kingdom, in 2005. (Credit: Universal Images Group/Getty Images)

(CNN) --

Electronics giant Sony announced Tuesday that it will cut 900 PlayStation jobs, representing 8% of the workforce.

The layoffs will affect all regions where Sony Interactive Entertainment is located, according to PlayStation's press release.

The in-house London studio behind the video game "Singstar" is closing completely.

"These are incredibly talented people who have been a part of our success, and we are very grateful for their contributions," wrote Jim Ryan, president and CEO of Sony Interactive Entertainment.

"However, the industry has changed immensely, and we need to prepare for the future and prepare the business for what is coming."

The workforce reduction comes after the company slashed its sales forecasts for this year and Naomi Matsuouka, Sony's senior vice president, said the PlayStation 5 console was nearing the end of its life cycle, according to Bloomberg.

Ryan had already announced in September his plans to retire in March as president of Sony Group Corporation.

Hiroki Totoki, chief operating officer and chief financial officer, will take the reins as interim CEO.

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The new CEO will face an entire technology sector in turmoil: the industry giants laid off 5,500 workers in the first two weeks of 2024 alone.

Specifically, the video game sector has hemorrhaged jobs from 2023 to this year.

Epic Games, for example, cut 830 jobs last September and Tencent's Riot Games laid off 11% of its workforce in January.

Echoing the direction of those other gaming companies, Ryan wrote in his email to employees: "We needed to take a step back, look at our business holistically, and move forward focusing on the long-term sustainability of the company and in offering the best possible experiences to our community.

Shares of Sony Group Corporation fell less than 1% following the news on Tuesday.