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, despite their significant contributions to the game's success.

"This is such a weird industry," Sasser remarked on LinkedIn. "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 expressed a mix of shock and anger over the layoffs, especially given Marvel Rivals' impressive performance. Since its launch in December, the free-to-play hero shooter has amassed over 20 million downloads and achieved significant peak concurrent player numbers on Steam.

Sasser's LinkedIn profile highlights that his team was instrumental in game and level design for Marvel Rivals, providing "guidance, strategy, and design direction over the last couple of 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 stated. "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."

NetEase emphasized that these layoffs will not affect the ongoing support for Marvel Rivals. The primary development team, led by Lead Producer Weicong Wu and Game Creative Director Guangyun Chen, remains based in Guangzhou, China. "We want to reassure our fanbase that the core development team for Marvel Rivals... remains fully committed to delivering an exceptional experience," NetEase added. "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 recent round of layoffs at NetEase follows a pattern of the company scaling back its overseas investments. It has closed studios in the U.S. and Japan, including Ouka Studios, the developer behind Visions of Mana. In November, Worlds Untold, led by Mass Effect alum Mac Walters, announced a pause in operations after parting ways with NetEase. Additionally, in January, NetEase cut ties with Jar of Sparks, founded by Halo and Destiny 2 veteran Jerry Hook in 2022.