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Dreams and LittleBigPlanet maker Media Molecule is reportedly looking to cut nearly 20 staffers from the studio.
According to a report by Sports Illustrated, employees were informed about the layoffs via an internal meeting today.
Sources told the publication that the studio is looking to get its current headcount of 135 employees down to about 115.
GamesIndustry.biz has reached out to Media Molecule for more information.
The job cuts come months after Media Molecule opened Dreams' creations to commercial use.
Earlier in the year, the studio had announced that it would end live service support of Dreams as it moves on to a new project.
It's the fourth Sony-owned studio to experience layoffs in recent months, with PixelOpus shut down in May, Naughty Dog laying off dozens of contractors earlier this month, and support studio Visual Arts affected by redundancies just yesterday.
Update: Media Molecule released a statement confirming its job cuts on social media.
The studio said, "Media Molecule has made significant strategic changes during the past year, including shifting our focus from Dream to our new project.
"We have had to make the difficult decision to being the consultation process for team members within certain departments of the studio. This is a tough moment for the individuals impacted and the studio overall."
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