Indian gaming platform MPL to lay off 350 employees to “survive” after New GST Guidelines

Bengaluru(India), 09/08/23: Indian gaming app Mobile Premier League has stated that it would have to lay off 350 employees in order to “survive” a tax imposed by the Indian government on online gaming enterprises.

The move follows the government’s decision last month to levy a 28% tax on funds collected from clients by online gambling companies.

According to MPL CEO Sai Srinivas’ memo procured by Reuters, the new rule will increase the company’s tax burden by 350%-400%, and the company is reconsidering spending related to its server and office infrastructure.

Srinivas stated, “Adjusting to a sudden increase of this magnitude means we need to make some very tough decisions … We must take steps to bring these expenses down in order to survive and to ensure that the business remains viable.”

A source familiar with the situation told Reuters that half of the company’s staff could be laid off, with the product team being the most hit, with more than 60 job layoffs.

In a letter to India’s finance ministry, more than 100 gaming companies argued the levy would impede foreign investment and jeopardise $2.5 billion already spent in the sector.