Mumbai: Games24x7 has started layoffs in the past few days, in line with the Supreme Court hearing on the start of online games with 28% Goods and Services Tax (GST).
The company declined to comment on the layoffs or disclose how many people were affected. However, two industry executives realized the incident estimated that about 180 employees were released.
According to Tracxn data, as of October 2024, Games24x7 has 821 employees. This means a reduction of about 21.9% of the staff.
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A third senior executive who asked to be anonymous, said the layoffs were “necessary because the company has hired too many hirings in the past two years to pursue rapid growth.”
Another person familiar with the matter added that all the fired were full-time employees. “The layoffs are to reduce the impact of costs in its fantasy sports division, My11 circle.”
My11Circle is Games24x7's fantasy gaming platform, competing with Dream11 and is the champion sponsor of this year's Indian Premier League (IPL). Both executives view IPL sponsors as a huge cost burden for the company.
Games24x7 (which also operates RummyCircle) gets Tiger Global Management, Raine Group, Malabar Investment Advisors and Das & Co. support. The company has expanded internationally. In FY23, it reported ₹198.8 billion operating revenue ₹199 million, 29% lower than its fiscal 22222 losses.
Layouts are at a time when the online gaming industry is subject to strict scrutiny. On Monday, the government told the Supreme Court that under the Goods and Services Tax (GST), there will be no distinction between skill games and opportunity games for taxes, and reiterated that the 28% tax should apply to the total entry-level amount in online games.
The tax policy was first implemented in 2023 and has had a huge impact on the industry. That year, as the company's financial burden increased, the most significant loss of employment. Since then, many companies have established a recruitment freeze, with job posting reportedly falling by 22% to 60%, especially for junior to intermediate positions. Some early-stage startups are also working to keep operations, some seeking mergers or shutdowns altogether.
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In August 2023, MPL ruled about 350 employees (half of its workforce), with tax liability increasing by 350-400% due to the new regulations. The product team was particularly affected. At about the same time, Rush Gaming Universe laid off 55 jobs, accounting for 25% of its employees, attributed the decision to the GST regime.
The real estate game platform quiz has been completely closed. Its founder Sachin Yadav listed revised tax rates, including the removal of TDS exemption limits and 30% TD of all bonuses, which are key reasons for the closure.
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In November 2023, Mumbai-based gaming process platform Locomotive created 40 employees, accounting for 36% of its workforce. The company uses it as a strategic restructuring to increase cost efficiency and support global expansion.
Despite the turmoil, the online gaming user base in India is still growing. According to the 2025 FICCI-EY report, the number of online gamers in the country rose to 488 million in 2024, with forecasts indicating further growth.
Input with Shouvik Das.
