NetEase, the developer behind the popular game Marvel Rivals, has announced layoffs within its Seattle-based design team, citing "organizational reasons." This decision came as a surprise to many, especially given the game's remarkable success. Marvel Rivals, a free-to-play hero shooter, has achieved over 20 million downloads since its launch in December and has seen significant peak concurrent player numbers on Steam.
Game Director Thaddeus Sasser shared the news on LinkedIn, expressing his shock and frustration. "This is such a weird industry," he wrote, highlighting the unexpected nature of the layoffs despite his team's successful contribution to the launch of Marvel Rivals. Sasser's team was responsible for game and level design, providing essential guidance and strategy over the past couple of years.
NetEase confirmed the layoffs to IGN but did not disclose the number of affected employees. In their 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." They emphasized their commitment to treating the laid-off employees respectfully and confidentially, acknowledging their valuable contributions.
Despite the cuts, NetEase reassured fans that the layoffs will not impact the ongoing support for Marvel Rivals. The primary development team, based in China and led by Lead Producer Weicong Wu and Game Creative Director Guangyun Chen, remains fully dedicated to the game's evolution. NetEase stated, "We are investing more, not less, into the evolution and growth of this game," promising new superhero characters, maps, features, and content to enhance the live service experience for players worldwide.
This latest round of layoffs is part of a broader trend at NetEase, which has been scaling back its overseas investments. The company has closed studios in the U.S. and Japan, including Ouka Studios, the developer of Visions of Mana. In November, Worlds Untold, led by Mass Effect alum Mac Walters, announced a pause in operations following a split with NetEase. Additionally, in January, Jar of Sparks, founded by Halo and Destiny 2 veteran Jerry Hook, was cut. These moves reflect a strategic shift in NetEase's global operations.