NetEase, the developer behind the hit game Marvel Rivals, has announced layoffs within its Seattle-based design team due to "organizational reasons." The news broke when Marvel Rivals game director Thaddeus Sasser shared on LinkedIn that he and his team were let go. Sasser expressed his shock and frustration, praising his team's contributions to the successful launch of Marvel Rivals.
"This is such a weird industry," Sasser wrote. "My stellar, talented team just helped deliver an incredibly successful new franchise in Marvel Rivals for NetEase Games... and were just laid off! Oh well! Times are tough all over - Let's find these incredible people new jobs, because we all need to eat, right? :D"
The gaming community reacted with a mix of shock and anger, especially considering the explosive success of Marvel Rivals. The free-to-play hero shooter has amassed over 20 million downloads since its launch in December and has seen significant peak concurrent player numbers on Steam. Sasser's LinkedIn profile highlights that his team was instrumental in game and level design, providing crucial guidance and strategy for Marvel Rivals over the past few years.
NetEase confirmed the layoffs to IGN, stating, "We recently made the difficult decision to adjust Marvel Rivals’ development team structure for organizational reasons and to optimize development efficiency for the game. This resulted in a reduction of a design team based in Seattle that is part of a larger global design function in support of Marvel Rivals. We appreciate the hard work and dedication of those affected and will be treating them confidentially and respectfully with recognition for their individual contributions."
Despite the layoffs, NetEase emphasized that the ongoing support for Marvel Rivals remains unaffected. The primary development team, led by Lead Producer Weicong Wu and Game Creative Director Guangyun Chen, is based in Guangzhou, China, and continues to be fully committed to enhancing the game. NetEase assured fans, "We want to reassure our fanbase that the core development team for Marvel Rivals... remains fully committed to delivering an exceptional experience. We are investing more, not less, into the evolution and growth of this game. We’re excited to deliver new super hero characters, maps, features, and content to ensure an engaging live service experience for our worldwide player base."
These layoffs are part of a broader trend of NetEase pulling back from overseas investments. The company has closed studios in the U.S. and Japan, including Visions of Mana developer Ouka Studios. In November, Worlds Untold, led by Mass Effect alum Mac Walters, announced a pause in operations following a split with NetEase. Additionally, in January, NetEase cut ties with Jar of Sparks, founded by Halo and Destiny 2 veteran Jerry Hook in 2022.