NetEase, the developer behind the hit game Marvel Rivals, has confirmed layoffs within its Seattle-based design team, citing "organizational reasons." The announcement came as a shock to many, especially given the game's remarkable success since its launch in December.
Thaddeus Sasser, the game director for Marvel Rivals, shared the news of his team's layoffs on LinkedIn, expressing his disbelief and frustration. "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 development community responded with a mix of shock and anger, considering Marvel Rivals' impressive performance. The free-to-play hero shooter has amassed over 20 million downloads and achieved significant peak concurrent player numbers on Steam.
Sasser's LinkedIn profile highlights that his team was instrumental in game and level design for Marvel Rivals, providing "guidance, strategy, and design direction over the last couple of 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 stated. "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."
NetEase emphasized that these layoffs will not affect the ongoing support for Marvel Rivals. The primary development team, led by Lead Producer Weicong Wu and Game Creative Director Guangyun Chen in Guangzhou, China, remains fully committed to the game's future. "We want to reassure our fanbase that the core development team for Marvel Rivals... remains fully committed to delivering an exceptional experience," NetEase added. "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."
This recent round of layoffs at NetEase is part of a broader trend of the company scaling back its overseas investments. It 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 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.
