Mobile Premier League is set to downsize its staff by laying off 350 employees which is around 50% of its total workforce. The direct impact of 28% of Goods & Service Tax levied on the full deposit amount for online gaming companies involved in real-money transactions can be seen as the elimination process occurring simultaneously with the government’s-imposed decision.
Subh Malhotra and Sai Srinivas, MPL co-founders, in their email to the employees, informed that the new decision by the government has increased the monetary burden on the firm, hence, they reach out to such a tough decision.
“The new rules will increase our tax burden by as much as 350-400 percent. As a business, one can prepare for a 50 percent or even a 100 percent increase, but adjusting to a sudden increase of this magnitude means we need to make some very tough decisions,” as claimed by the businessline as they have seen the copy of the mail.
It further reveals that primarily their variable cost involves people, office infrastructure, and servers, which they have already started revisiting their server along with office infrastructure costs.
The mail further stated, “Despite this, we will still have to reduce our people-related costs. Regrettably, we have to let go of around 350 of you.”
The mail added that they were doing great after they become EBITDA-positive last December and recorded the best performance in business in June and beat that themself in July.
MPL marked the entry into the unicorn club by getting valued in billions, last year in September. The firm counts the biggest investors including Peak XV, Moore Strategic Ventures, SIG, RTP Global, Play Ventures, Telstra Ventures, Founders Circle Capital, and Base Partners.
