NetEase is reportedly scaling back its investments in international gaming ventures.

The retreat from global expansion began late last year, as the Chinese tech giant implemented job cuts and “paused” projects at several studios, including Worlds Untold, Jar of Sparks, and Liquid Sword. Recent reports from Game File indicate that the company is now “actively seeking to offload a number of its non-Chinese studios” as part of a divestiture strategy.

According to anonymous sources speaking to Game File, NetEase is looking to divest the majority of its international studios. Without finding suitable buyers, well-known teams like Quantic Dream and Grasshopper Manufacture may face the threat of closure.

Additional studios facing uncertainty include Anchor Point, GPTRACK50, Jackalyptic Games, Nagoshi, Pincool, Rebel Wolves, Skybox Labs, Studio Flare, T-Minus Zero Entertainment, among others.

While NetEase did not provide an official statement, they conveyed to Game File that “All studios and projects are subject to ongoing review and evaluation, and NetEase will make necessary adjustments throughout that process.”

Earlier this week, NetEase implemented job cuts within its U.S.-based Marvel Rivals creative team, despite the game’s prominent success. The company cited the need to “enhance development efficiency” for this decision. Furthermore, they asserted that they “remain committed to their global expansion strategy” amidst rumors of unloading “nearly all” international gaming companies to mitigate rising operational costs.

Furthermore, reports indicate that Marvel Rivals—a major success for NetEase since its launch last year—was almost shelved at one point because the CEO opposed paying Disney for character licensing. Learn more here.