Sony Group Corp. is set to reduce its workforce by approximately 250 employees at its recordable media business’ main manufacturing center in northeastern Japan. The company will also provide early retirement packages to its staff, as reported by sources familiar with the situation on Saturday.

The decision to cut jobs comes in response to a decrease in demand for traditional storage mediums like Blu-ray discs, as streaming services have become more prevalent in today’s market. The manufacturing facility located in Tagajo, Miyagi Prefecture, currently employs around 670 individuals.

In addition to the job cuts, the electronics and entertainment conglomerate plans to gradually halt the production of optical disc storage media products, including Blu-ray discs, according to insider sources.