Zupee has laid off around 200 employees as regulatory bans on real-money gaming disrupt its core business and revenue model. The workforce reduction spans multiple functions, underscoring the pressure on India’s gaming startups as state-level enforcement tightens.
The job cuts affect teams across product development, operations, customer support and marketing, people familiar with the matter said. Staff were informed over the past week as the company moved to recalibrate operations amid declining activity in cash-based formats.
Media reports aid the layoffs are linked to the impact of recent state bans on real-money gaming and stricter enforcement across key markets, which have slowed user acquisition and dented revenue growth. Reuters has reported that gaming companies dependent on cash formats are facing mounting compliance costs and legal uncertainty.
In internal communications shared with employees, Zupee’s leadership described the decision as difficult but necessary. The company said it would offer severance packages, career transition support and priority referrals with partner organisations to affected staff.
Zupee also said it is accelerating cost optimisation and exploring revenue diversification to stabilise operations. Executives indicated that the firm is evaluating alternatives such as ad-led engagement, compliant skill-based formats and tournament-driven models to reduce regulatory exposure.
Zupee’s move reflects a broader reset across India’s gaming and digital entertainment sector. The Economic Times reported earlier that several gaming startups have slowed hiring or cut staff as bans on cash-based games reshape business models and investor expectations.
The layoffs come against a wider backdrop of caution in the startup ecosystem, where investors are pressing companies to prioritise sustainable unit economics over growth at all costs. HR experts say workforce realignments, while disruptive, are becoming more common as firms adjust to regulatory and funding constraints.
Looking ahead, industry watchers expect continued consolidation in India’s gaming sector, with companies that can pivot quickly to compliant formats better placed to retain capital and talent in an increasingly regulated market.