NetEase, the developer behind the successful free-to-play hero shooter Marvel Rivals, has announced layoffs affecting its Seattle-based design team. The decision was made for "organizational reasons," as stated by the company.
Game director Thaddeus Sasser shared the news of his team's layoffs on LinkedIn, expressing his surprise and disappointment. "This is such a weird industry," Sasser wrote, highlighting the irony of his team being let go shortly after contributing to the successful launch of Marvel Rivals. He called for support in finding new jobs for his talented former colleagues.
The gaming community has responded with shock and frustration, especially given the game's impressive performance. Since its launch in December, Marvel Rivals has garnered over 20 million downloads and achieved significant peak concurrent player numbers on Steam.
Sasser's LinkedIn profile reveals that his team was instrumental in game and level design, providing crucial guidance and strategy over the past few 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 explained. They emphasized their commitment to treating the affected employees with respect and confidentiality.
Despite the layoffs, NetEase assures fans that the ongoing support for Marvel Rivals will not be impacted. The primary development team, led by Lead Producer Weicong Wu and Game Creative Director Guangyun Chen in Guangzhou, China, remains fully dedicated to enhancing the game. NetEase plans to continue investing in new superhero characters, maps, features, and content to provide 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 several overseas investments. Recent closures include studios in the U.S. and Japan, such as Ouka Studios, the developer of Visions of Mana. Additionally, Worlds Untold paused operations in November after parting ways with NetEase, and Jar of Sparks, founded by Jerry Hook in 2022, was also shut down in January.