MPL to Cut Almost 50% of Workforce Following GST Hike on Real-Money Gaming

Mumbai: Mobile Premier League (MPL), a prominent esports and skill gaming company, is reportedly laying off 350 employees in India, accounting for approximately 50% of its workforce in the country. The decision comes as a response to the GST Council’s proposal to impose a 28% tax on the full deposit value for gaming platforms, up from the current 18% GST on platform fees.

MPL co-founder Sai Srinivas expressed concerns over the new tax rules, stating that the increased tax burden could be as high as 350% to 400%.

The sudden magnitude of the increase has forced the company to make difficult decisions to ensure its survival and viability. Variable costs, primarily related to personnel, server, and office infrastructure, need to be reduced in response to the tax changes.

This is the second round of layoffs for MPL, which had previously laid off over 100 employees and exited the Indonesian market in May 2022.