LogInThe initial reports about "significant layoffs" at NetEase turned out to be significantly exaggerated.
UPD: NetEase has responded to 80 Level's inquiry about the layoffs, but unfortunately, the reply from the spokesman was the very same write-up they sent to PC Gamer. Below is the full email the NetEase representative sent us, with some details regarding Rivals' main leadership positions not being affected, which, for some reason, were omitted by PC Gamer:
"We recently made the difficult decision to adjust Marvel Rivals' development team structure for organizational reasons and to optimize development efficiency for the game. 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.
We want to reassure our fanbase that the core development team for Marvel Rivals, which continues to be led by Lead Producer Weicong Wu and Game Creative Director Guangyun Chen in Guangzhou, China, remains fully committed to delivering an exceptional experience. 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."
Original article: Over the past few hours, dozens of headlines have emerged online about "significant layoffs" at NetEase Games, the developer behind the blockbuster third-person hero-shooter Marvel Rivals, that, according to some reports, affected "a bunch" of the game's developers.
While it's always unfortunate when talented developers lose their jobs without warning – even more so when the game projects they worked on were successful, profitable, and beloved by the gaming community – the true scale of the layoffs has been somewhat distorted by sensationalist reporting, with some articles suggesting uncertainty about the future of Marvel Rivals as a whole. So today, let's do our best to separate facts from fiction and assess what actually happened at NetEase earlier this week.
NetEase
The news first broke when the community noticed a series of LinkedIn posts from developers at NetEase's US office stating that their entire team had been terminated in one fell swoop, with the most notable of these being a post made by Marvel Rivals Game Director Thaddeus Sasser, who was also laid off. "This is such a weird industry... My stellar, talented team just helped deliver an incredibly successful new franchise in Marvel Rivals for NetEase Games and were just laid off," Sasser wrote.
As I mentioned above, it didn't take long for the announcement to become the topic of the day, with numerous outlets reporting on the layoffs and, understandably, pointing out the contrast between Marvel Rivals' immense success – 310,000 players on Steam alone at the time of writing – and the studio cutting its Game Director, of all people. However, in the following hours, various clarifications surfaced online, painting a clearer picture of the situation and showing that while most reports correctly stated that NetEase had a round of layoffs, their actual scope was exaggerated.
Firstly, according to Daniel Ahmad, Director of Research and Insights at Niko Partners, this round of layoffs has only affected the team in the US, while the core development team in Guangzhou, China has not been impacted. Allegedly, the terminations are part of "a broader reconsideration of NetEase's overseas investments and studios," and while this decision is undeniably a bad look for the company, it is unlikely to have a significant impact on Marvel Rivals as a whole.
Regarding Sasser's role as Rivals' Game Director, in VideoGamer's podcast from November 2024, first spotted by Mark Kern, Sasser himself highlighted the distinction between the Game Director and the Creative Director, pointing out that the main creative mind behind Marvel Rivals was Guangyun Chen, while his own role focused on "manpower and budgets." With that in mind, it seems that while Sasser's departure may impact the production side of things, it is unlikely to be felt by players, as Guangyun Chen will continue to serve as "the face" of the game.
Lastly, concerning the true scope of the layoffs, according to Co-Founder and Editor-in-Chief of Second Wind Nick Calandra, NetEase's latest round of eliminations only affected a total of six individuals – the entire "American Division for Marvel Rivals." For comparison, NetEase Games' "About" page on LinkedIn states that the company has over 10,000 people under its employ, meaning that in terms of numbers (only numbers, not necessarily impact), the layoffs barely made a dent. However, it's no secret that a headline like "NetEase fires the entire US branch, including Marvel Rivals' Game Director" would attract far more clicks than "NetEase lays off six developers," which explains why the situation was blown out of proportion.
As it stands, the only puzzling aspect of all this is the exact reason why NetEase decided to cut the developers when Marvel Rivals is still widely popular and remains one of the most played games at the moment. 80 Level has contacted the NetEase team to find out the reason and will provide an update once a response is received.
Don't forget to join our 80 Level Talent platform and our new Discord server, follow us on Instagram, Twitter, LinkedIn, Telegram, TikTok, and Threads, where we share breakdowns, the latest news, awesome artworks, and more.