NetEase, the developer behind the successful free-to-play hero shooter Marvel Rivals, has confirmed layoffs within its Seattle-based design team due to "organizational reasons." The announcement came after Marvel Rivals game director Thaddeus Sasser shared on LinkedIn that he and his team were let go. Sasser expressed his frustration and confusion over the situation, highlighting the team's significant contribution to the game's success. "This is such a weird industry," he 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, especially given Marvel Rivals' remarkable performance. Since its launch in December, the game has amassed over 20 million downloads and achieved significant peak concurrent player numbers on Steam. Sasser's LinkedIn profile indicates that his team was responsible for game and level design, providing guidance, strategy, and design direction over the past few years.

NetEase confirmed the layoffs to IGN, stating, "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." However, the company did not disclose the number of employees affected.

Despite the layoffs, NetEase emphasized that the cuts will not impact the ongoing support for Marvel Rivals. The game's primary development team, based in China and led by Lead Producer Weicong Wu and Game Creative Director Guangyun Chen, remains committed to delivering an exceptional experience. "We want to reassure our fanbase that the core development team for Marvel Rivals... remains fully committed to delivering an exceptional experience," NetEase stated. "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."

These layoffs are part of a broader trend of NetEase pulling back from overseas investments and closing studios in the U.S. and Japan. In November, Worlds Untold, led by Mass Effect alum Mac Walters, announced a pause in operations following a split with publisher NetEase. Additionally, in January, NetEase cut Jar of Sparks, a studio founded by Halo and Destiny 2 veteran Jerry Hook in 2022.