Breaking: Zupee lays off 200 employees in second phase amid strategic realignment

Online social gaming and entertainment platform Zupee has laid off around 200 employees in a second phase of workforce rationalisation, taking the total number of job cuts at the company to nearly 370. The latest round follows an earlier layoff of 170 employees and comes as the company realigns its business and cost structure amid regulatory changes in India’s online gaming sector.

The recent layoffs have primarily impacted Zupee’s technology and customer support teams, according to people aware of the matter. Employees associated with Zupee Studio, the company’s micro-drama and short-form content vertical, have not been affected. The restructuring is part of a broader effort to streamline operations as Zupee narrows its focus on select growth areas.

Confirming the development, Dilsher Singh Malhi, founder and chief executive officer of Zupee, said decisions around workforce restructuring were difficult but necessary in the context of long-term business priorities. “Decisions like these are never easy. Our people have played an important role in Zupee’s journey and we deeply value their contributions. However, as we continue to align our organisation with long-term priorities, some changes are necessary to ensure the business remains sustainable and future-focused,” Malhi said.

Also See: Amazon Layoffs

The layoffs are closely linked to a larger strategic overhaul announced earlier this year following the introduction of the Promotion and Regulation of Online Gaming Act, 2025. As part of that realignment, Zupee had reduced its workforce by about 170 employees—nearly 30% of its total staff at the time—and announced a shift away from certain formats to focus on culturally rooted social games and short video content.

Going forward, the company plans to concentrate on non-real-money and engagement-led formats, including an astrology-based application, free-to-play games and esports-focused offerings. Industry observers say this pivot reflects a broader trend among gaming companies as regulatory scrutiny around real-money gaming intensifies.

To support affected employees, Zupee has put in place a multi-pronged relief plan. This includes financial support extending beyond contractual notice periods, with additional compensation linked to years of service. For several long-serving employees, the total financial assistance could extend up to six months.

The company is also continuing health insurance coverage for departing employees for the full policy term and has set up a ₹1 crore medical support fund to provide additional assistance in case of unforeseen health needs. Beyond financial measures, Zupee has committed to providing career transition support, including priority consideration for re-hiring if suitable roles emerge in the future.

A dedicated internal team is also working with recruitment firms and industry stakeholders to help impacted employees explore opportunities across the gaming, media and technology sectors.

Founded in 2018, Zupee claims to have more than 150 million registered users across India. The company said it remains committed to building responsible and culturally relevant entertainment experiences, while continuing to invest in product innovation, regulatory compliance and sustainable growth aligned with the country’s evolving online gaming framework.