What is the story about?
Online gaming platform, Zupee has laid off around 200 employees in its latest phase of restructuring, bringing total job cuts this year to nearly 370.
The move marks the company’s second round of layoffs as it continues to recalibrate operations in response to India’s tightening online gaming regulations. This also makes Zupee, one of the companies to announce job cuts in the first month of 2026 .
For context, Zupee is an Indian online gaming and entertainment platform that focuses on skill-based social games rather than pure gambling or chance-based formats.
The recent cuts have primarily affected the technology and customer support teams, while the company’s short-form content arm, Zupee Studio, remains untouched. The decision, though tough, is part of what the company calls a “strategic realignment” to strengthen its long-term business priorities.
Confirming the development, Zupee’s founder and chief executive officer Dilsher Singh Malhi said the restructuring was essential to position the company for the future. “These decisions are never easy, but they are necessary to ensure we build sustainably and continue innovating for our users,” Malhi said.
Zupee’s latest restructuring follows an overhaul of India’s gaming landscape under the Promotion and Regulation of Online Gaming Act, 2025, which has prompted companies to reassess their revenue models.
Earlier this year, the startup had already laid off 170 employees, around 30 per cent of its workforce at the time, as part of an initial realignment effort.
The company is now shifting its focus away from real-money formats toward social and engagement-led gaming experiences. This includes free-to-play titles, astrology-based applications, and esports-oriented offerings.
Industry watchers say this change mirrors a broader trend across India’s online gaming sector, where firms are increasingly pivoting towards culturally resonant and regulation-friendly experiences rather than riskier money-based games.
By narrowing its focus, Zupee hopes to carve out a niche in the evolving entertainment ecosystem where gaming, short videos, and social interaction increasingly intersect.
Despite the layoffs, Zupee has announced a comprehensive relief and support plan for the impacted workforce.
The company is offering financial assistance beyond notice periods, with additional compensation linked to years of service, extending up to six months for long-term employees.
Healthcare benefits will continue as well, with Zupee maintaining health insurance coverage for the entire policy term. In addition, the company has set up a Rs 1 crore medical support fund to help former employees with unforeseen health emergencies.
To assist with career transitions, an internal task force is working with recruitment partners and industry networks to help affected staff find roles across gaming, technology, and media sectors.
Zupee has also pledged to prioritise re-hiring displaced workers if relevant positions open up in the future.
As India’s gaming industry grapples with changing regulations and business realities, Zupee’s latest move signals a cautious but determined effort to evolve. The company appears ready to trade short-term turbulence for a longer play, betting on social gaming, content, and cultural connection as the next big win.
The move marks the company’s second round of layoffs as it continues to recalibrate operations in response to India’s tightening online gaming regulations. This also makes Zupee, one of the companies to announce job cuts in the first month of 2026 .
For context, Zupee is an Indian online gaming and entertainment platform that focuses on skill-based social games rather than pure gambling or chance-based formats.
The recent cuts have primarily affected the technology and customer support teams, while the company’s short-form content arm, Zupee Studio, remains untouched. The decision, though tough, is part of what the company calls a “strategic realignment” to strengthen its long-term business priorities.
Confirming the development, Zupee’s founder and chief executive officer Dilsher Singh Malhi said the restructuring was essential to position the company for the future. “These decisions are never easy, but they are necessary to ensure we build sustainably and continue innovating for our users,” Malhi said.
Zupee layoffs
Zupee’s latest restructuring follows an overhaul of India’s gaming landscape under the Promotion and Regulation of Online Gaming Act, 2025, which has prompted companies to reassess their revenue models.
Earlier this year, the startup had already laid off 170 employees, around 30 per cent of its workforce at the time, as part of an initial realignment effort.
The company is now shifting its focus away from real-money formats toward social and engagement-led gaming experiences. This includes free-to-play titles, astrology-based applications, and esports-oriented offerings.
Industry watchers say this change mirrors a broader trend across India’s online gaming sector, where firms are increasingly pivoting towards culturally resonant and regulation-friendly experiences rather than riskier money-based games.
By narrowing its focus, Zupee hopes to carve out a niche in the evolving entertainment ecosystem where gaming, short videos, and social interaction increasingly intersect.
Support for affected employees
Despite the layoffs, Zupee has announced a comprehensive relief and support plan for the impacted workforce.
The company is offering financial assistance beyond notice periods, with additional compensation linked to years of service, extending up to six months for long-term employees.
Healthcare benefits will continue as well, with Zupee maintaining health insurance coverage for the entire policy term. In addition, the company has set up a Rs 1 crore medical support fund to help former employees with unforeseen health emergencies.
To assist with career transitions, an internal task force is working with recruitment partners and industry networks to help affected staff find roles across gaming, technology, and media sectors.
Zupee has also pledged to prioritise re-hiring displaced workers if relevant positions open up in the future.
As India’s gaming industry grapples with changing regulations and business realities, Zupee’s latest move signals a cautious but determined effort to evolve. The company appears ready to trade short-term turbulence for a longer play, betting on social gaming, content, and cultural connection as the next big win.
