Clearly what happened, Sony parent went to PlayStation and was like, "Hey you need to change your budget because of economic uncertainty." That led to canceled projects and layoffs. The problem is, that Sony had an inflated budget for 2021, 2022, and 2023. So not only do they need to come back down to earth, they have to reduce spending.
Most likely Jim left because he didn't agree with the new budget. Ideally he wanted to spend more on acquisitions, have internal studios working on 2-3 games, not cut from anywhere.
Anyone working on a canceled game was let go. Their FR is next week, I am dying to see if they say how many games are in production. They could of canceled as many as 5 games. Games I would be worried about:
TLOU MP (dead)
Deviation's game (dead)
Twisted Metal
Continued Dreams support, PC, PS5, PS VR2, yada yada (Dead)
other game at Naughty Dog that is not TLOU3
MP game at SuckerPunch
Whatever was going on at Visual Arts (Uncharted Remake?)
Anything VR
Games clearly still alive
Bluepoints new IP
Ghost 2
Horizon 3
Horizon MP
MLB
Asobi AAA game
Wolverine
Follow up Spider-Man 2 content
Housemarque
Santa Monica game after GOWR
I would go as far as to say both Fairgames and Concord are up in the air.