Marvel Rivals Director and Seattle Team Laid Off, NetEase Assures Game's Future

NetEase, the developer behind the hit game Marvel Rivals, has announced layoffs within its Seattle-based design team, citing "organizational reasons." The news broke overnight when game director Thaddeus Sasser shared on LinkedIn that he and his team were let go. Sasser expressed his bewilderment and disappointment, emphasizing the irony of being laid off right after successfully launching Marvel Rivals.

"This is such a weird industry," Sasser noted. "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 gaming community's response was a mix of shock and frustration, especially considering Marvel Rivals' impressive performance. Since its launch in December, the free-to-play hero shooter has achieved over 20 million downloads and boasted significant peak concurrent player numbers on Steam. Sasser's LinkedIn profile highlights his team's contribution, focusing on game and level design, providing strategic guidance and direction 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. "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 assured fans that the core development team in Guangzhou, China, led by Lead Producer Weicong Wu and Game Creative Director Guangyun Chen, remains dedicated to enhancing Marvel Rivals. "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."

This move is part of a broader trend of layoffs at NetEase, which has scaled back its international investments and closed studios in the U.S. and Japan. Notable closures include Ouka Studios, the developer behind Visions of Mana, and Worlds Untold, led by Mass Effect alum Mac Walters, which paused operations after parting ways with NetEase in November. Additionally, in January, NetEase cut Jar of Sparks, founded by Halo and Destiny 2 veteran Jerry Hook in 2022.