Guerrilla Cambridge, a branch of Killzone developer Guerrilla Games, is closing its doors and all employees will lose their jobs. A statement from Sony provided to GI.biz today confirmed the closure, adding that the layoffs are "regrettable."

Sony's statement went on to say that its decision to close Guerrilla Cambridge came after a review of the company's entire portfolio of projects and resources. "In order to deliver on our strategic objectives, it is necessary to make some changes to the European studios structure," it said.

Where possible, Sony said it will attempt to move affected developers to other internal projects. If that is not possible, Sony said it will connect with local studios to discuss job opportunities.

"Whilst we accept that this decision will mean that we risk losing high caliber 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," Sony's statement goes on to say. "This decision should not take anything away from the incredible games and services that Guerrilla Cambridge has delivered."

Guerrilla Cambridge was formerly known as SCEE Cambridge Studio. It had been operational for close to two decades. It is not immediately clear how many people worked at the studio.

The studio's latest game was Rigs: Mechanized Combat League for PlayStation VR. The studio also developed Killzone: Mercenary and the PSP version of LittleBigPlanet. Some of its older games include the MediEvil series, Primal, GhostHunter, and the licensed game based on Fox's TV show 24.

The closure of Guerrilla Cambridge does not affect the main Guerrilla studio, which is located in Amsterdam. The studio's current project is Horizon: Zero Dawn, which comes out in February.