Gameskraft Technologies has laid off over 400 employees, more than half its workforce, as it wrestles with the fallout from tighter regulations on real-money gaming (RMG) in India.
The reductions span nearly every department and level of the company, transforming what was once a “rapidly growing” startup into a significantly pared-down operation.
At the heart of the cost-cutting is the new legal regime under the Promotion and Regulation of Online Gaming Bill, which has either banned or severely restricted cash-based gaming operations, advertisements and endorsements. These changes have rendered several of Gameskraft’s core business segments unviable.
While the company is restructuring, it says it is trying to soften the blow for impacted employees: paying advance salaries for several months, continuing medical and life-insurance cover, extending paid leave for women on maternity break, and offering job-placement assistance to displaced staff.
The layoffs at Gameskraft are emblematic of larger headwinds facing India’s online gaming sector as regulatory oversight intensifies and companies reassess previously aggressive growth plans.