Indian gaming app Mobile Premier League will lay off 350 employees as it takes steps to 'survive' a tax imposed by the Indian government on online gaming companies, according to an internal memo seen by Reuters on Tuesday.
NEW DELHI/BENGALURU, Aug 8 - Indian gaming app Mobile Premier League will lay off 350 employees as it takes steps to "survive" a tax imposed by the Indian government on online gaming companies, according to an internal memo seen by Reuters on Tuesday.last month to impose a 28% tax on funds that online gaming companies collect from customers.
The new rule will increase the company's tax burden by 350%-400%, MPL CEO Sai Srinivas said in the memo, adding that the company is revisiting expenses related to their server and office infrastructure. "Adjusting to a sudden increase of this magnitude means we need to make some very tough decisions ... We must take steps to bring these expenses down in order to survive and to ensure that the business remains viable," Srinivas said.Half the workforce employed by the company could be laid off, with the product team to be the most affected with more than 60 job cuts, a source familiar with the information told Reuters.
Reporting by Aditya Kalra; Additional reporting by Biplob Kumar Das and Ashish Chandra; Editing by Sonia CheemaAditya Kalra is the Company News Editor for Reuters in India, overseeing business coverage and reporting stories on some of the world's biggest companies. He joined Reuters in 2008 and has in recent years written stories on challenges and strategies of a wide array of companies -- from Amazon, Google and Walmart to Xiaomi, Starbucks and Reliance.
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