Unexpected Layoffs at NetEase Despite Marvel Rivals’ Success
Seattle, Wednesday, 19 February 2025.
Marvel Rivals achieved over 20 million players, yet NetEase announced layoffs of the Seattle development team. This raises questions about strategic shifts amidst the game’s popularity.
Impact and Scale of Layoffs
On February 17, 2025, NetEase (NASDAQ: NTES) announced the layoffs of its Seattle-based design team, despite Marvel Rivals’ remarkable success [1][2]. According to company statements, six U.S. employees were dismissed [2], including game director Thaddeus Sasser and level designers Jack Burrows and Garry McGee [1][2]. The core development team, which remains operational in Guangzhou, China, was not affected by these cuts [2].
Game’s Market Performance
Marvel Rivals has demonstrated impressive performance metrics since its December 6, 2024 launch [3]. The game surpassed 20 million players and maintains over 250,000 daily concurrent players on Steam [1]. The free-to-play hero shooter generated approximately $135 million in revenue across all platforms during its first month [3], positioning itself among the top 10 most-played games on PlayStation, Steam, and Xbox [2].
Company Response and Future Plans
NetEase has characterized the layoffs as an organizational restructuring aimed at optimizing development efficiency [2]. In an official statement, the company emphasized that they are ‘investing more, not less, into the evolution and growth of this game’ [3]. The game’s immediate future appears stable, with a scheduled content update featuring Dracula’s Castle in Central Park planned for February 21, 2025 [3][8].
Industry Context
These layoffs are part of a broader trend in the gaming industry, which has seen over 25,000 job losses since the start of 2023, with 900 reported already in 2025 [1]. NetEase’s decision follows similar restructuring at other western studios, including the closure of Worlds Untold in November 2024 and staff reductions at Jar of Sparks in January 2025 [1].