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Zupee slashes 40% of workforce in second major layoff wave

Another brutal round of cuts at Zupee leaves 200 without jobs. Can the embattled startup survive the gaming industry's regulatory storm?

,   and  Administrator
2 min read
The image shows a graph on a white background with text that reads "Production Capacity vs...
The image shows a graph on a white background with text that reads "Production Capacity vs Manufacturing Cost". The graph is divided into two sections, one for production capacity and one for manufacturing cost, and each section is labeled with the corresponding production capacity. The production capacity section is represented by a blue line, while the manufacturing cost section is shown by a red line. Both sections are labeled with numerical values, indicating the cost of each section.

SUMMARY

Zupee slashes 40% of workforce in second major layoff wave

Zupee is laying off around 200 employees, almost 40% of its workforce The layoffs were announced today during a town hall by cofounder and CEO Dilsher Singh Malhi The fresh round of layoffs comes four months after Zupee fired around 130 employees

ARTICLE

Delhi NCR-based gaming startup Zupee is laying off around 200 employees, almost 40% of its workforce, sources told our platform.

The layoffs are a part of a cost-cutting exercise following the ban on real money gaming and were announced today during a town hall by cofounder and CEO Dilsher Singh Malhi.

Confirming the development, Zupee told our platform in a statement, "As the company sharpens its focus on core growth areas including culturally-rooted online social games and emerging content formats, certain roles have been restructured, impacting approximately 200 employees across a few teams."

The impacted employees, besides their contractual notice period, will be offered additional financial support linked to years of service, it added. Zupee said it will also continue the current health insurance coverage for the affected employees and set up INR 1 Cr medical support fund to provide extra security to the impacted employees.

The layoffs come on the heels of Zupee adding short-video content, under the name Zupee Studio, to its offerings following the ban on its real money games. The startup is offering 1-3 minute mini-episodes across genres such as romance, drama, thriller, and comedy.

The fresh round of layoffs also comes almost four months after the startup fired around 170 employees, nearly 30% of its workforce.

The Delhi NCR-based startup, which has raised $120 Mn in funding to date, counts investors such as Z47 Partners, Orios Venture Partners, Nepean Capital, among others, as its backers. It has been reeling under pressure after the government banned real money gaming last year.

The move has resulted in real money gaming startups sacking hundreds of employees. Games24X7, PokerBaazi, Head Digital Works, and Mobile Premier League are among the other startups that have laid off employees.

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