Zupee Announces Layoff of 170 Employees and Restructuring Operations Due to New Online Gaming Regulations

Zupee has announced the layoff of 170 employees, which accounts for 30% of its workforce. This decision is part of a strategic realignment due to a new regulation that bans real-money online games. The company stated that affected employees will be prioritised for re-hiring as new positions open up.

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The restructuring follows the enactment of the Promotion and Regulation of Online Gaming Act, 2025. This legislation has forced platforms like Zupee to halt their real-money gaming services. The Online Gaming Bill, 2025, imposes a complete ban on games involving financial stakes.

Support for Affected Employees

Dilsher Singh Malhi, Founder and CEO of Zupee, expressed gratitude towards departing employees, acknowledging their significant contributions. "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," he said. Malhi emphasised the company's commitment to supporting these employees in transitioning confidently to new roles.

Zupee has introduced a support package aimed at ensuring financial stability, health, and career assistance for those affected. This includes financial aid beyond the notice period, linked to service duration, with some long-serving staff receiving up to six months of support.

Health and Well-being Initiatives

The company will maintain current health insurance coverage for its full term. Additionally, Zupee has set up a Rs 1 crore medical support fund to offer extra security to employees seeking new opportunities. This initiative underscores the company's dedication to the well-being of its former staff.

Looking forward, Zupee aims to diversify its offerings by expanding into culturally-rooted online social games and other entertainment products. With over 150 million registered users, the company believes this strategic shift will create a more robust and future-ready business model.

This difficult decision was deemed necessary by Zupee to align with the new regulatory environment. The company remains committed to evolving its business while supporting its workforce through these changes.

With inputs from PTI