NetEase Reportedly Retreats from U.S. Operations Amid Marvel Rivals Layoffs

NetEase has confirmed layoffs affecting its development team working on Marvel Rivals amid reports that the company is about to divest from its US operations.

According to sources interviewed by VentureBeat, the Marvel Rivals layoffs “are just the beginning”, as NetEase is reportedly losing interest in developing games with overseas staff and is planning to divest from its U.S.-based studios. These sources claim that the company is pulling back from Western talent due to the high cost of U.S. developers in particular. Venturebeat speculates that recent layoffs might be a sign of NetEase planning to exit all of their international investments and holdings, including the studios they earlier acquired and helped establish.

NetEase issued a statement to IGN acknowledging the decision but provided no specifics regarding the number of individuals impacted. It was initially unclear whether Seattle-based Marvel Rivals game director Thaddeus Sasser was affected by the layoffs, but it has now been confirmed that he was also let go.

While the company didn’t share exact numbers, it did clarify that the layoffs were part of a broader reorganization of the Marvel Rivals development team. Specifically, the Seattle-based design team, which is part of a global network supporting the game, was reduced as part of efforts to improve efficiency in development. NetEase emphasized that these changes were organizational, not performance-related.

“This [decision] resulted in a reduction of a design team based in Seattle,” NetEase shared, “but we want to reassure fans that this won’t affect the core development of Marvel Rivals in any way.” The company pointed out that the primary development team, based in Guangzhou, China, would continue working on the game under the leadership of Lead Producer Weicong Wu and Game Creative Director Guangyun Chen.

NetEase assured that support for Marvel Rivals “would continue uninterrupted”. The company also made it clear that the focus remains on expanding the game, promising the arrival of new superhero characters, maps and features.

NetEase has aggressively expanded its presence in Western game development through a series of acquisitions and studio formations in recent years. The company acquired No More Heroes developer Grasshopper Manufacture in 2021, followed by Detroit: Become Human studio Quantic Dream in 2022 and Minecraft co-developer SkyBox Labs in 2023. Additionally, NetEase established several Western studios, including the UK-based Spliced Inc and the Los Angeles-based BulletFarm, led by Call of Duty veteran David Vonderhaar.