Mobile Premier League (MPL), an e-sports gaming company, has had to lay off approximately half of its Indian workforce due to a tax burden that has increased by 350 to 400%! This means that nearly 350 employees will be laid off.
According to the new GST rules, the firm must pay a tax of 28% on the full deposit value. Previously, gaming platforms had to pay 18% GST on platform charges. Because of the significant increase in tax burden, the platform has been forced to reduce headcount.
The platform’s variable costs are primarily comprised of people costs as well as workplace infrastructure and server costs. Ways to reduce server and infrastructure costs have already been investigated.
In May 2022, the platform ceased operations in Indonesia, resulting in the layoff of over 100 people. After about five months, it reportedly raised about $150 million to become a unicorn. The platform was valued at $2.3 billion at the time.
Sai Srinivas and Shubh Malhotra founded the company about five years ago to offer more than 60 games such as puzzles, casual games, board games, quizzes, and even daily fantasy sports. It has over 90 million registered users throughout Europe, Asia, and North America.