Sony has confirmed to Develop that Studio Liverpool will be restructured as part of 'project prioritisation'.
In a statement, a representative said: "It has been decided that production on a number of projects within Studio Liverpool will cease immediately due to project prioritisation. Our North West Studio Group has been, and will continue to be, a vital cog in the WWS family, with a history of producing genre defining games such as MotorStorm, WipEout, Formula 1 and WRC.
It went on to say that "this decision will have no impact of the role that the North West Studio Group will play in the future of all PlayStation platforms."
Develop believes that the firm hopes to reallocate affected staff to other teams, but redundancies may be involved should that not prove possible.