Bengaluru-based MPL to lay off 350 employees
The move is believed to be an impact of the GST council’s recent recommendation to impose 28 per cent tax on the earnings from this sector.
Bengaluru-based skill gaming company Mobile Premier League (MPL) is set to lay off 350 people from its workforce, according to the mail sent by the company to its employees. The move is believed to be an impact of the Goods and Services Tax (GST) council’s recent recommendation to impose 28 per cent tax on the earnings from this sector.
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In a mail to its employees, the MPL wrote, “Regrettably, we will have to let go of around 350 of you. This has been a heart wrenching process because it impacts a lot of our friends and colleagues.” According to news agency Reuters, the product team would be the most affected wing in the company with almost 60 job cuts. This is said to be the second round of layoffs at this unicorn. It initially laid off around 100 people in 2021.
Meanwhile, the company has offered possible assistance to the employees who will be impacted. “We recognize that these changes will also affect your personal life, and the company is here to offer any assistance you may need during this period. We will also do everything in our capacity to help you find new opportunities,” the mail further read.
In July, Union Finance Minister Nirmala Sitharaman in New Delhi said that the GST council has decided to levy 28% GST on online gaming, horse racing and casinos at full value. The decision was made after the 50th meeting of the council. The finance minister also said that a discussion was held on if an online game is skill-based, or chance based. “We are not looking at a game if it is skill-based, chance-based or both, we are purely looking at the value it generates which can be taxed,” the union minister said in the national capital.
Karnataka IT minister Priyank Kharge earlier said that the GST council should have made a mindful decision regarding the taxation on online gaming industry. “It would have been beneficial to consider this decision more thoroughly, as it could hinder the achievement of the $1 trillion digital economy target by 2025. Additionally, the Indian gaming startup ecosystem, which has attracted $2.5 billion in investments, may suffer from reduced prospects of foreign direct investment due to this taxation,” he said earlier.
