Zupee to lay off 170 employees, restructure ops amid new regulatory framework

Zupee to lay off 170 employees

Zupee on Thursday announced a layoff of 170 employees, representing 30 per cent of its total employee strength, and a strategic business realignment of operations in the face of a new regulation banning real-money online games.

The restructuring comes in response to the recently enacted Promotion and Regulation of Online Gaming Act, 2025, and impacted employees will be given first priority for re-hiring as new roles become available, the company said in a statement.

Zupee, among many other platforms, had to shut down its real-money gaming offerings in the wake of the Online Gaming Bill, 2025, which puts a blanket ban on games involving monetary stakes.

"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. We are providing comprehensive support to help our colleagues step seamlessly & with confidence into their next roles," Dilsher Singh Malhi, Founder & CEO of Zupee said.

The company outlined a support package for the impacted employees, focusing on financial security, health and well-being, and career assistance.

This includes additional financial support beyond the contractual notice period, linked to years of service, with some long-tenured employees receiving up to six months of financial aid.

In terms of health and well-being, current health insurance coverage will remain active for its full term. Furthermore, Zupee has established a Rs 1 crore medical support fund to provide additional security for those exploring new opportunities.

Looking ahead, Zupee said it plans to expand its portfolio of culturally-rooted online social games and other entertainment products. With over 150 million registered users, the company believes this strategic direction will foster a more resilient and future-ready business.