NetEase, the developer behind the hit game Marvel Rivals, has confirmed layoffs within its Seattle-based design team, citing "organizational reasons." This news broke overnight when Marvel Rivals game director Thaddeus Sasser shared on LinkedIn that he and his team were let go, despite their significant contributions to the game's success.

In his LinkedIn post, Sasser expressed the bizarre nature of the video game industry, highlighting the contrast between his team's successful launch of the Marvel Rivals franchise and their sudden layoffs. He humorously yet poignantly called for support in finding new jobs for his team, acknowledging the necessity of employment.

The gaming community responded with a mix of shock and anger, especially considering Marvel Rivals' tremendous success. The free-to-play hero shooter has achieved over 20 million downloads since its December launch and has seen impressive peak concurrent player counts on Steam. Sasser's profile indicates that his team was instrumental in game and level design, providing crucial guidance and strategy over the past few years.

NetEase issued a statement to IGN, confirming the layoffs but not disclosing the exact number of affected employees. The company explained that the decision was made to "adjust Marvel Rivals’ development team structure" and "optimize development efficiency." They emphasized their respect and confidentiality towards those impacted, recognizing their 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 fully committed to enhancing Marvel Rivals. The company plans to invest more into the game's evolution, promising new superhero characters, maps, features, and content to maintain an engaging live service experience for players worldwide.

This recent round of layoffs is part of a broader trend at NetEase, which has scaled back on international investments and closed studios in the U.S. and Japan. Notable closures include Ouka Studios, the developer of 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 shut down Jar of Sparks, a studio founded by Halo and Destiny 2 veteran Jerry Hook in 2022.