Marvel Rivals has taken the gaming world by storm, amassing over 20 million players within weeks of its launch. The free-to-play hero shooter continues to pull in more than 250,000 daily concurrent players on Steam. But success doesn’t always mean security in the gaming industry. Despite the blockbuster numbers, NetEase has begun laying off staff from the very team that helped turn Marvel Rivals into a hit.
Developers Blindsided by Layoffs After Launching a Hit
Marvel Rivals game director Thaddeus Sasser broke the news on LinkedIn, expressing shock over the company’s decision to let go of employees from its Seattle-based studio.
“This is such a weird industry,” Sasser wrote. “My stellar, talented team just helped deliver an incredibly successful new franchise in Marvel Rivals for NetEase Games… and were just laid off!”
His frustration was echoed by Marvel Rivals level designers Jack Burrows and Garry McGee, who also announced their departures. Burrows described the layoffs as a “sad culling,” while McGee called it a strange reality in an industry that seems increasingly unstable for developers.
NetEase has yet to confirm the total number of employees affected by the cuts.
Not the First, Won’t Be the Last: NetEase’s Recent Layoff Trend
For those following NetEase’s moves in the gaming space, this decision may not be all that surprising. The company has been making sweeping cuts across its Western studios in recent months, including:
- A hiring and development freeze at Worlds Untold, the studio founded by BioWare veteran Mac Walters.
- Job losses at Jar of Sparks, the first-party studio led by former Halo Infinite head of design Jerry Hook.
- Layoffs at Swedish developer Liquid Swords, which was launched in 2020 with NetEase backing.
While these moves may be financially motivated, they paint a bleak picture for job security in the gaming industry—even at studios with high-profile projects.
The Broader Gaming Industry Layoff Crisis
NetEase is far from the only company making cuts. The gaming industry as a whole has been in turmoil, with over 25,000 job losses recorded since the start of 2023.
And 2025 is off to a similarly grim start. Less than two months in, nearly 1,000 more layoffs have already been reported at companies including:
- Unity – The company behind the popular game engine has been restructuring, cutting hundreds of jobs.
- Hi-Rez Studios – Known for games like Paladins and Smite, the studio has been reducing its workforce.
- Ubisoft – The Assassin’s Creed publisher has quietly trimmed teams across multiple locations.
- Sumo Digital – The UK-based studio, responsible for Sackboy: A Big Adventure, has also seen job losses.
- Splash Damage and Midnight Society – Both studios have been hit with layoffs despite ongoing projects.
Developers across the board are questioning their long-term job security in an industry that increasingly values efficiency and cost-cutting over stability.
Big Hits, Bigger Layoffs: Why Are Profitable Games Not Saving Jobs?
On paper, Marvel Rivals is a massive success. Millions of players, high engagement, and a strong start—what more could a company want? Yet the layoffs continue, raising the question: If a hit game isn’t enough to ensure job security, what is?
The harsh reality is that many of these layoffs aren’t directly tied to a game’s success but rather to corporate restructuring, shifting priorities, and profit-driven decision-making. Even with strong revenue, companies look for ways to optimize costs, sometimes at the expense of the very teams that built their success.
This trend isn’t unique to NetEase. Activision Blizzard, Microsoft, and Electronic Arts have all made similar moves in recent years, cutting teams even as their games continue to perform well.
What’s Next for Marvel Rivals and Its Developers?
For the laid-off developers, the future is uncertain. Many will seek new opportunities, potentially at rival studios or independent projects.
As for Marvel Rivals, the game itself remains a bright spot in NetEase’s portfolio. But with key team members gone, the long-term direction of the project may shift. Will NetEase continue investing in the game’s growth, or will it follow the fate of other short-lived multiplayer hits that burned bright and faded fast?
One thing is certain—layoffs in the gaming industry aren’t slowing down, and for developers, job security feels more fragile than ever.