Gameskraft lays off workforce across departments

Gameskraft has completed a major round of layoffs that affected a significant portion of its workforce, marking one of the most substantial employment contractions in India's online gaming industry. The job cuts, which affected teams across the organization, were part of a broader restructuring exercise that has now been completed.

According to sources familiar with the matter, the layoffs are not a recent development but rather part of a companywide restructuring that was completed earlier. The organizational overhaul affected employees across multiple departments and functions, with the company making deliberate decisions about which roles and teams to retain.

What initially appeared to be a modest adjustment in staffing levels expanded significantly as the full scope of the restructuring became apparent. The downsizing has transformed the company's operational footprint, with numerous teams either disbanded or significantly reduced in size.

The workforce reduction was primarily driven by sweeping changes in India's gaming regulatory framework. The implementation of the Promotion and Regulation of Online Gaming Act has fundamentally altered the business environment for companies operating in the RMG space.

This new legislation has either prohibited or heavily restricted cash-based gaming activities, creating an existential challenge for companies whose business models depended on these revenue streams. The regulatory crackdown, which authorities positioned as necessary to address gambling addiction and consumer protection concerns, has forced gaming companies to fundamentally reassess their operations.

For Gameskraft, which operates skill-based gaming platforms, the regulatory shift meant that several core business segments became unsustainable. The company found itself unable to maintain its previous scale of operations and was compelled to undertake significant workforce adjustments to ensure business continuity.

The restructuring was undertaken with business continuity as a primary consideration, according to sources. The evolving regulatory landscape left the company with limited options for maintaining its workforce at previous levels while remaining compliant with new legal requirements.

The company implemented support measures for departing employees throughout the restructuring process. All affected workers received three months' advance salary, and the company honored outstanding job offers to new hires.

Departing employees received a one-time ex gratia payment, severance calculated at one month's pay per completed year of service, notice pay as per their contracts, and leave encashment for up to 45 days based on total salary.

Medical insurance was extended through March or until employees joined new organizations. Life insurance coverage continues until June, protecting up to twice the employee's annual compensation or a capped amount. Access to wellness programs and mental health support remains available through early May.

Women proceeding on maternity leave received six months of additional pay. The company waived recoveries related to joining bonuses, relocation costs, and notice period buyouts.

Career support included job placement assistance, professional references, an option to purchase office laptops at nominal cost, and priority consideration for future roles as the company evolves. These benefits were applied consistently across all phases of the restructuring.

What was recently a high-growth sector attracting significant venture capital investment has become increasingly uncertain as government restrictions tighten. The regulatory environment continues to evolve, leaving companies uncertain about which business activities will remain permissible and viable.