Zupee Cuts 200 Jobs; Offers 6 Months Pay and 1Cr Medical Fund

Online gaming and interactive media startup Zupee has announced its second major round of job cuts in less than six months, laying off approximately 200 employees.

This latest reduction, representing nearly 40% of its remaining workforce, follows a massive structural shift in India’s gaming landscape triggered by the “Promotion and Regulation of Online Gaming Act, 2025.”

The Impact of the RMG Ban

The layoffs are a direct consequence of the nationwide ban on Real Money Gaming (RMG), which officially outlawed online games involving monetary stakes and enrichment.

Zupee, once a leader in the RMG space with popular titles like Ludo Supreme, was forced to discontinue its paid gaming formats in late 2025.

The first wave of job cuts occurred in September 2025, where 170 employees (30% of the team) were let go.

With this second round, the company’s total headcount has dropped to approximately 350, down from over 700 a year ago.

The recent cuts have primarily impacted the technology, operations, marketing, and customer support divisions.

Strategic Pivot: From Money to Media

Zupee’s founder and CEO, Dilsher Singh Malhi, stated that the layoffs were necessary to ensure the business remains “sustainable and future-focused” under the new regulatory framework.

The startup is now aggressively pivoting away from RMG toward:

• Zupee Studio: A new vertical focused on “micro-dramas” and short-form video content.
• Casual & Social Gaming: Transitioning to free-to-play, ad-supported, or subscription-based models.
• New Segments: Exploring non-cash formats like astrology (Neo Astro) and micro-learning.

Zupee Employee Support and Severance

To mitigate the impact, Zupee has announced a multi-pronged relief plan. Affected employees will receive:

• Financial Aid: Additional compensation linked to years of service, extending up to six months for long-tenured staff.
• Health Benefits: Continuation of health insurance for the full policy term and access to a ₹1 crore medical support fund.
• Career Assistance: A dedicated transition team to help staff find new roles, with priority for rehiring should vacancies emerge.

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