NetEase, the developer behind the popular game Marvel Rivals, has recently confirmed layoffs within its Seattle-based design team, attributing the decision to "organizational reasons." The announcement came to light when game director Thaddeus Sasser shared the news of his and his team's layoffs on LinkedIn, expressing a mix of surprise and resilience in the face of the industry's volatility.
"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 responded with a combination of shock and outrage, particularly given the phenomenal success of Marvel Rivals. Since its launch in December, the free-to-play hero shooter has amassed over 20 million downloads and achieved impressive peak concurrent player counts on Steam.
Sasser's LinkedIn profile highlights his team's significant contributions to Marvel Rivals, focusing on game and level design and providing strategic guidance over the past few years.
In a statement to IGN, NetEase confirmed the layoffs but did not disclose the number of affected employees. "We recently made the difficult decision to adjust Marvel Rivals’ development team structure for organizational reasons and to optimize development efficiency for the game," the company explained. "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 reassured fans that the ongoing support for Marvel Rivals would not be affected. The primary development team, led by Lead Producer Weicong Wu and Game Creative Director Guangyun Chen, remains based in Guangzhou, China. "We want to reassure our fanbase that the core development team for Marvel Rivals... remains fully committed to delivering an exceptional experience," NetEase stated. "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 pattern of restructuring at NetEase, which has scaled back several international ventures. The company has closed studios in the U.S. and Japan, including Ouka Studios, the developer behind Visions of Mana. In November, Worlds Untold, led by Mass Effect veteran Mac Walters, announced a pause in operations following a split with NetEase. Additionally, in January, NetEase cut ties with Jar of Sparks, a studio founded by Halo and Destiny 2 veteran Jerry Hook in 2022.