Gaming platform MPL trims 350 jobs over new tax regime
Gaming app Mobile Premier League will cut 350 jobs as a strategic move to navigate the challenges a newly implemented tax regulation poses.
The decision results from a recent imposition of the government’s 28 percent goods and services tax (GST) on the revenue generated by online gaming companies from their clientele.
According to an internal memo, this tax policy is expected to amplify MPL’s tax obligations by 350 to 400 percent.
CEO Sai Srinivas noted the need to revisit their server and office infrastructure expenses
He said: “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.”.
MPL did not respond to requests for comments.
Half of staff could go
Approximately half of MPL’s existing staff could face dismissal.
A source said a major impact on the product team is projected to witness over 60 job eliminations.
The company’s current workforce count remains unknown.
Over 100 gaming firms voiced concerns over the tax imposition in a letter addressed to India’s finance ministry.
They say this policy could hinder foreign investments and jeopardise a $2.5 billion already invested in the sector.