Gaming platform Zupee is laying off 170 employees - or 30 percent of workforce - in the latest fallout of the blanket ban on real-money gaming.
"This has been a tough call for us, but was necessary to adapt to the new regulatory framework. Our colleagues who are leaving us have been an integral part of Zupee's journey and we will always remain thankful for their contribution in building Zupee into what it is today," CEO Dilsher Singh Malhi said on September 11 in a statement.
"We are providing comprehensive support to help our colleagues step seamlessly and with confidence into their next roles," Malhi added.
Zupee said the company will provide employees with additional financial support based on years of service, beyond the contractual notice period, which, for many may translate into six months of financial support.
Employee health insurance coverage will remain active for its full term, even after they leave Zupee, and in addition, Zupee has set up a Rs 1 crore medical support fund to provide additional security.
The startup is setting a dedicated team to work with industry stakeholders to identify new work opportunities for impacted employees, and they will also be given first priority for re-hiring once new roles become available.
Zupee has joined a growing list of real-money gaming companies that have laid off employees at a large scale in past few weeks as the industry grapples with the fallout of the ban. India's new online gaming law prohibits online money games, where a user makes a deposit, directly or indirectly, with the expectation of earning winnings on that deposit.
Head Digital Works, which operates the online rummy platform A23 Rummy, recently laid off nearly 500 employees, representing over two-thirds of its workforce.
Mobile Premier League (MPL) is significantly downsizing its India team, with sources saying the company could lay off around 60-80 percent of its workforce, which currently numbers about 500-600 employees, Moneycontrol reported on August 31.
Nazara Technologies-backed Baazi Games (Moonshine Technology), which operates the online poker platform PokerBaazi, is also reducing its workforce by over 200 people, representing nearly 45 percent of its employees, Moneycontrol reported on September 1.
Games24x7, which operates the online rummy platform Rummy Circle and fantasy sports platform My11Circle, has also carried out significant layoffs at the company.
Founded by Malhi and Siddhant Saurabh in 2018, Zupee focuses on board games such as Ludo and Snakes and Ladders, and had recently introduced carrom on the platform.
Following the RMG ban, Zupee shared plans to expand its range of online social games on an ad-supported basis.
“Our vision of reimagining social gaming and entertainment that connects with our cultural heritage and brings enjoyable experiences to people across the country remains unchanged”, Malhi said.
Earlier this week, Moneycontrol reported that Zupee has forayed into micro dramas with a new feature called Zupee Studio that offers bite-sized drama shows to its 150 million users. It has also launched a paid subscription service called Zupee Plus - priced at Rs 499 for three months - offering ad-free games and unlimited access to shows.
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