MPL layoffs are rocking India’s startup ecosystem, with Mobile Premier League, a $2.3 billion gaming unicorn, slashing 60% of its India workforce—roughly 300 employees. As a tech journalist with over 15 years covering startups for Startup INDIAX, I’ve witnessed how regulatory shifts can disrupt even the strongest players. This article dives into the causes of MPL’s layoffs, their impact on employees and the gaming industry, and lessons for founders facing uncertainty. Published by Startup INDIAX, this piece offers actionable insights to help entrepreneurs adapt and thrive in volatile markets.
Table of Contents
What Triggered MPL’s Massive 60% Layoffs in India?
Mobile Premier League (MPL), a Bengaluru-based gaming platform, is cutting approximately 60% of its India staff, impacting around 300 of its 500 employees. This drastic move, reported on August 31, 2025, stems from India’s new Promotion and Regulation of Online Gaming Bill, 2025, which bans real money gaming (RMG). MPL, valued at $2.3 billion and backed by investors like Peak XV Partners, built its success on RMG platforms like fantasy sports and skill-based games.
Scale of the Job Cuts
The layoffs affect multiple departments, including marketing, engineering, operations, and compliance. Previously, India accounted for 50% of MPL’s global revenue. With the RMG ban, this revenue stream has collapsed, forcing the company to downsize aggressively. This isn’t MPL’s first restructuring—smaller cuts occurred in 2023—but the current scale is unprecedented.
The Role of the Real Money Gaming Ban
India’s gaming bill, assented by President Droupadi Murmu in 2025, targets platforms profiting from real money games, citing concerns over gambling-like behavior. Critics, including industry leaders, argue it stifles innovation and overlooks the skill-based nature of games like those offered by MPL. The ban has left companies scrambling, with MPL’s layoffs being the most significant to date.
How Are Employees Affected by MPL Layoffs?
The human cost of MPL’s layoffs is staggering. With 300 employees facing job loss, the impact extends beyond finances to emotional and professional uncertainty.
Impact on Livelihoods
Affected roles span frontline positions like user acquisition to backend functions like engineering. An anonymous MPL employee shared on Reddit, “The gaming bill hit us out of nowhere. Many of us are struggling to find roles in a saturated job market.” India’s tech sector, already grappling with layoffs at firms like Byju’s and Paytm, offers little relief.
Emotional and Professional Fallout
Layoffs take a toll on mental health. Startup INDIAX interviews with former startup employees reveal feelings of betrayal and stress, especially when regulatory changes feel beyond control. For MPL staff, the sudden shift from a high-growth unicorn to mass layoffs has sparked fear across the industry. Career coaches recommend upskilling in adjacent fields like edtech or fintech, but transitions are tough in a competitive landscape.
What Does This Mean for MPL’s Future in India?
MPL faces a pivotal moment. The RMG ban has gutted its core business model, forcing a rethink of its strategy.
Financial Strain and Restructuring
With India’s operations no longer viable, MPL is cutting costs to survive. The company has raised over $150 million from investors, but burning through cash without revenue threatens its unicorn status. CEO Sai Srinivas reportedly addressed employees in an internal memo, emphasizing “strategic realignment” to focus on non-RMG products and international expansion.
Pivot to International Markets
MPL is exploring markets like Southeast Asia and Africa, where RMG regulations are less stringent. However, scaling globally requires significant investment and cultural adaptation. Experts like Rohit Agarwal, a gaming industry analyst, warn, “MPL’s pivot is a gamble. Competing with global giants like Tencent will be tough without a strong local foothold.”
How Is the Indian Gaming Industry Responding?
MPL’s layoffs are a wake-up call for India’s gaming sector, valued at $2.6 billion in 2024. Competitors like Dream11 and Gameskraft face similar pressures, with reports of smaller layoffs and hiring freezes.
Ripple Effects on Competitors
The RMG ban affects the entire ecosystem. Dream11, another fantasy sports giant, has scaled back marketing, while smaller platforms are shutting down. A 2025 report by NASSCOM noted that 40% of India’s gaming startups may fold within a year due to regulatory and funding challenges.
Regulatory Challenges for Startups
India’s gaming bill highlights the risks of operating in a heavily regulated market. Startups must navigate unclear compliance rules and high tax burdens. For instance, a 28% GST on online gaming, introduced in 2023, already strained profitability. Entrepreneurs now face the challenge of innovating within tight legal boundaries.
What Can Entrepreneurs Learn from MPL Layoffs?
MPL’s crisis offers critical lessons for startup founders. Regulatory changes are inevitable, but resilience can make or break a business.
Strategies to Navigate Regulatory Shocks
- Diversify Revenue Streams: MPL’s reliance on RMG left it vulnerable. Startups should explore multiple monetization models, like subscriptions or in-app purchases.
- Stay Ahead of Regulations: Monitor policy changes and engage with industry bodies like FICCI to influence legislation.
- Build Agile Teams: Cross-functional teams can pivot quickly, reducing the need for mass layoffs.
Building Resilient Business Models
Founders should prioritize adaptability. For example, Zomato survived early regulatory hurdles by pivoting from a directory to food delivery. MPL could follow suit by focusing on casual gaming or esports. As Startup INDIAX has reported, resilient startups often emerge stronger from crises by leveraging data-driven decisions and lean operations.
Conclusion and Call to Action
MPL’s layoffs underscore the fragility of even the most successful startups in the face of regulatory upheaval. For entrepreneurs, the lesson is clear: adaptability and foresight are non-negotiable. At Startup INDIAX, we’re committed to bringing you stories that inspire and inform. What’s your take on MPL’s layoffs? Share your thoughts in the comments or explore more startup insights on our platform.
