NetEase has laid off the Seattle-based design team responsible for Marvel Rivals, despite the game's recent success. The news was announced by game director Thaddeus Sasser, who expressed surprise at the decision, especially in light of the game's 20 million downloads since December. NetEase confirmed the layoffs, citing "organizational reasons" and a desire to optimize development efficiency. While the company claims these cuts will not affect ongoing support for Marvel Rivals, as the primary development team is in China, this action follows a pattern of NetEase pulling back from overseas investments. Prior to the Marvel Rivals action, NetEase has closed studios and paused operations with other developers, such as Ouka Studios, Worlds Untold, and Jar of Sparks. The gaming community has reacted with anger and shock.