NetEase, the developer behind the popular game Marvel Rivals, has announced layoffs within its Seattle-based design team, citing "organizational reasons." The news broke overnight when Thaddeus Sasser, the game director for Marvel Rivals, shared on LinkedIn that he and his team had been let go. Sasser expressed his bewilderment at the industry's volatility, emphasizing the team's significant contribution to the successful launch of Marvel Rivals, a free-to-play hero shooter that has amassed over 20 million downloads since its debut in December and has achieved substantial concurrent player numbers on Steam.
Sasser highlighted his team's role in game and level design, providing guidance and strategic direction over the past few years. In response to the layoffs, the video game development community expressed both shock and outrage, given the game's recent success.
NetEase confirmed the layoffs to IGN, though it did not disclose the number of affected employees. The company stated, "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 reassured fans that the primary development team in Guangzhou, China, remains committed to the game. Led by Lead Producer Weicong Wu and Game Creative Director Guangyun Chen, the team is focused on enhancing Marvel Rivals with new superhero characters, maps, features, and content to maintain an engaging live service experience for players worldwide.
This move is part of a broader trend of layoffs and restructuring at NetEase, which has scaled back its international investments. The company has previously closed studios in the U.S. and Japan, including Ouka Studios, the developer of Visions of Mana. Additionally, in November, Worlds Untold, led by Mass Effect alum Mac Walters, paused operations following a separation from NetEase. In January, Jar of Sparks, founded by Halo and Destiny 2 veteran Jerry Hook in 2022, was also cut.
