MPL Layoffs: Mobile Premier League to Fire 350 Employees After Government Imposes 28% GST on Online Gaming
Mobile Premier League (MPL), a prominent gaming platform based in India, is set to release 350 employees, almost 50% of its workforce, in the second round of the layoff as per an internal memo cited in a recent report.
Mumbai, August 8: Mobile Premier League (MPL), a prominent gaming platform based in India, is set to release 350 employees, almost 50% of its workforce, in the second round of the layoff as per an internal memo cited in a recent report. The MPL Layoffs come after the GST Council's proposal to levy a substantial 28% tax on the entire deposit amount, without differentiating between games of skill and games of chance, has garnered attention. Currently, gaming platforms are subject to an 18% GST on their platform fees.
According to a report published by Moneycontrol, MPL co-founder Sai Srinivas, in an email to employees, said, "The new rules will increase our tax burden by as much as 350-400%. As a business, one can prepare for a 50% or even a 100% increase, but adjusting to a sudden increase of magnitude means we need to make some very tough decisions." Srinivas added that "As a digital company, our variable costs predominantly involve people, server and office infrastructure. Therefore, we must take steps to bring these expenses down in order to survive and to ensure that the business remains viable." Dell Layoffs: Dell Technologies to Lay Off Employees in Sales Teams Amid Partner-Driven Market Strategy.
This marks the second instance of workforce reductions at the Bengaluru-based startup in approximately a year. In May 2022, the company had already released over 100 employees and withdrawn from the Indonesian market. Cisco Layoffs: Networking Giant Lays Off Employees Across Business Units in Fresh Round of Job Cuts.
During its meeting the previous month, the GST Council made the decision to impose a 28% GST on the complete nominal value of placed bets. Union Finance Minister Nirmala Sitharaman had earlier announced that the GST Council will reassess the decision either after six months from its enactment or by April 2024, aiming to determine whether any modifications to the regulation are necessary.
(The above story first appeared on LatestLY on Aug 08, 2023 07:57 PM IST. For more news and updates on politics, world, sports, entertainment and lifestyle, log on to our website latestly.com).