Marvel Rivals developer NetEase has announced layoffs within its Seattle-based design team, citing "organizational reasons."
Game Director Thaddeus Sasser shared the news on LinkedIn, expressing his shock and frustration over the decision. "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 video game community expressed outrage over the layoffs, especially given Marvel Rivals' remarkable success. Since its launch in December, the free-to-play hero shooter has amassed over 20 million downloads and achieved significant peak concurrent player counts on Steam.
Sasser's LinkedIn profile highlights that his team was instrumental in game and level design for Marvel Rivals, providing crucial guidance, strategy, and design direction over the past few years.
NetEase confirmed the layoffs to IGN but did not disclose the number of affected employees. In a statement, the company explained, "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 will not be impacted. The primary development team, based in China and led by Lead Producer Weicong Wu and Game Creative Director Guangyun Chen, remains fully committed to the game's evolution. "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 trend of NetEase scaling back its international operations. The company has previously 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 alum Mac Walters, paused 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.
