NetEase, a Chinese tech company, has reportedly laid off the development team in Seattle working on Marvel Rivals on February 18th. Several developers from the studio announced these sudden job cuts, but the company has not yet provided a reason for the decision.

Reports indicate that NetEase dismissed the Seattle-based team that was in charge of developing the popular action game, Marvel Rivals, on February 18th. Numerous developers, including the game director, Thaddeus Sasser, have confirmed the layoffs. Sasser voiced his disappointment regarding the team’s termination on LinkedIn.

NetEase Based in China Announces Layoffs for Marvel Rivals Development Team

Thaddeus Sasser mentioned some of his team members who were also affected by the layoffs, including level designer Garry McGee. He commended McGee’s work, highlighting his proactive approach to problem-solving.

Marvel Rivals director and team laid off according to posts pic.twitter.com/KRHDgjq2pq

— Wario64 (@Wario64) February 18, 2025

He further explained that the team at the R&D branch focused on creating innovative level designs and gameplay mechanics. The director noted that these gameplay mechanics significantly sped up the team’s progress and were crucial to their development process.

Jack Burrows also confirmed the job cuts, stating that even the game’s success couldn’t prevent the layoffs. Gary McGee also commented on the situation in a separate post, saying, “All good things must come to an end.”

NetEase Games later acknowledged the layoffs, stating that the decision was made due to organizational restructuring. The company added that these layoffs aimed to enhance the efficiency of the game’s development.

A NetEase spokesperson clarified that this action involved reducing a design team in Seattle, which was part of a larger global design structure supporting Marvel Rivals. He acknowledged the dedication and hard work of every team member affected and assured that they would be treated with respect, with recognition of their individual contributions.

The spokesperson reassured fans that the Marvel Rivals team remains dedicated to providing an excellent gaming experience and has increased investment in the game’s future development and growth.

The representative conveyed the company’s enthusiasm for introducing new superhero characters, maps, features, and content to maintain an engaging and ongoing live service for players worldwide.

Industry Experts Share Thoughts on NetEase’s Layoff Decision

Daniel Ahmad, director of research and insights at Niko Partners, commented that these layoffs only impacted the Seattle-based team, not the main Marvel Rivals development studio located in China. He mentioned that this move is part of a larger strategic review of NetEase’s international investments and studios.

Ahmad further explained that the decision would not negatively affect the game, and the current development plans are still in progress. He indicated that NetEase, the parent company, initiated this reevaluation last year, which has led to the withdrawal of funding and the closure of studios in both Japan and the United States.

Ahmad pointed out that this reevaluation is still ongoing for multiple reasons. However, he admitted that it creates a negative public image for NetEase to lay off a successful team despite its size. Ahmad added that unlike other studio closures caused by poor performance, this was not the case in Seattle.

Journalist Patrick Dane commented, based on his knowledge of Marvel Rivals’ development, that there were likely underlying issues. He mentioned that Marvel Rivals was always presented as a collaborative project between China and the US. He expressed his initial confusion regarding the existence of two development teams and their respective roles. The journalist suggested that the layoffs are a result of downsizing the US operations.

These layoffs occurred even as Marvel Rivals continued to be successful, attracting over 10 million players to download the hero shooter game. Steam data showed that the live service title consistently reached peaks of over 300,000 concurrent players daily on the platform in the two months following its launch.

Marvel Rivals was released on December 5th as a free-to-play action game for PC, PlayStation, and Xbox. Players can choose to play as various characters from the Marvel universe, including Iron Man and Spider-Man.

According to a community tracker, more than 14,600 jobs were cut in the games industry in 2024. The total number of individuals laid off since 2022 currently totals 34,000.

Source: cryptopolitan.com