NetEase, the developer behind the wildly popular game Marvel Rivals, has announced layoffs affecting its Seattle-based design team due to “organizational reasons.” The news broke overnight when Thaddeus Sasser, the game director for Marvel Rivals, shared on LinkedIn that he and his team were let go.
In his post, Sasser expressed his confusion and frustration about the industry, stating, “This is such a weird industry. 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 announcement has sparked a wave of shock and anger within the video game development community, especially considering the explosive success of Marvel Rivals. The free-to-play hero shooter has amassed over 20 million downloads since its launch in December and has achieved significant peak concurrent player numbers on Steam.
Sasser’s LinkedIn profile highlights that his team was instrumental in game and level design, 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. 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 emphasized that the cuts would not impact 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. NetEase reassured fans, saying, “We want to reassure our fanbase that the core development team for Marvel Rivals... remains fully committed to delivering an exceptional experience. 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 move is part of a broader trend of layoffs at NetEase, which has been scaling back its overseas investments. The company has closed several studios in the U.S. and Japan, including Visions of Mana developer Ouka Studios. 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.