Guerrilla Games' main studio in Amsterdam, where PlayStation 4-exclusive Horizon: Zero Dawn is being made, will not be affected.
"Within [Sony Interactive Entertainment] Worldwide Studios, we have a regular process of review in order to consider projects coming to completion and the deployment of resources," Sony said in a statement sent to Eurogamer. "In such a competitive landscape this enables us to continue to create and produce high-quality, innovative and commercially viable projects.
"Having reviewed and assessed all current projects and plans for the short and medium term, we have decided that in order to deliver on our strategic objectives, it is necessary to make some changes to the European studios structure.
"As a result, it has been decided that Guerrilla Cambridge Studio will close."
Sony added: "It is regrettable that this decision will lead to compulsory redundancies. Whilst we accept that this decision will mean that we risk losing high calibre staff, by focusing on other Studios with exciting new projects in development, (including continued work on PlayStation VR), we believe we will be in a stronger position going forward and able to offer the best possible content of the highest quality to our players.
http://www.eurogamer.net/articles/2017-01-12-sony-closes-rigs-studio-guerrilla-cambridge