Online gaming platform Zupee has announced the layoff of 170 employees, that is, about 30 per cent of its total workforce, as part of a major restructuring drive. The decision follows the enactment of the Promotion and Regulation of Online Gaming Act, 2025, which imposes a blanket ban on all money-based online games.
The company confirmed that employees affected by the cuts will be given priority for re-hiring as new roles emerge. The move comes weeks after Zupee and several other platforms were forced to shut down their real-money gaming operations in compliance with the new law.
Zupee said it has put together a support package for departing staff, aimed at easing the transition. This includes financial assistance beyond the standard notice period, with long-serving employees eligible for up to six months of support. Health insurance coverage will remain valid for its full duration, and the firm has set up a Rs 1 crore medical fund to provide additional cover for employees seeking new opportunities. Career support and outplacement assistance are also part of the package.
While the layoffs mark a setback, Zupee signalled its intention to pivot its business model. The company said it plans to invest in developing culturally-rooted online social games and broader entertainment products. With a user base of more than 150 million, Zupee believes this new direction will allow it to build a more resilient and future-focused business.
The reshaping of Zupee underscores the impact of the Online Gaming Act on India’s fast-growing gaming sector.
