NetEase Games Lays Off US Team Despite Marvel Rivals' Success, Sparks Industry Shock
February 18, 2025
Despite the successful launch of Marvel Rivals, NetEase Games has confirmed layoffs affecting several US-based team members.
Despite the layoffs, NetEase emphasized its commitment to Marvel Rivals, pledging further investments in new characters, maps, and features to enhance the live service experience.
These layoffs occurred shortly after a content update for Marvel Rivals and amid ongoing plans for season 2, which is expected to launch in early April 2025.
While the layoffs in the U.S. division are significant, NetEase assured fans that the core development team in Guangzhou, China, remains committed to enhancing the game.
Thaddeus Sasser, the game director, expressed his surprise at the layoffs on LinkedIn, stating, "This is such a weird industry," and noted that he and his design team were among those let go.
NetEase has been reevaluating its overseas studios, leading to a reduction in investments and the closure of several U.S. and Japanese studios.
As a result of the layoffs, several talented designers are now seeking new employment opportunities as they begin 2025.
These layoffs reflect a broader trend in the gaming industry, where success does not guarantee job security, as many developers have faced layoffs despite their titles performing well.
The gaming industry reacted with shock to the layoffs, especially given the game's strong performance in a competitive live-service market.
Marvel Rivals has achieved remarkable success, topping Steam's charts and accumulating over 10 million registered users within the first three days of its launch.
The layoffs also come in the context of the ongoing US-China trade war, raising concerns about the stability of jobs in the global gaming industry.
Veteran game artist Del Walker and others have voiced confusion over the layoffs, questioning the rationale behind job cuts despite the game's thriving status.
Summary based on 13 sources
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Sources

TechRadar • Feb 19, 2025
NetEase Games has issued a statement on Marvel Rivals layoffs, citing ‘organizational reasons’
Eurogamer.net • Feb 20, 2025
Marvel Rivals surpasses 40m players, as NetEase denies abandoning western studios