Layoffs: Bengaluru-based gaming company Gameskraft has laid off 120 employees. This move comes in the wake of the government’s ban on real-money gaming and the alleged financial scandal involving the company’s former Chief Financial Officer (CFO), Ramesh Prabhu.
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Job Cut: Bengaluru-based gaming company Gameskraft has laid off 120 employees. This move comes in the wake of the government’s ban on real-money gaming and the alleged financial scandal involving the company’s former Chief Financial Officer (CFO), Ramesh Prabhu. The company stated that the decision was made due to “external circumstances” and the need to adapt to “the new reality.”
Former CFO accused of embezzling 270 crore rupees
According to a report by Moneycontrol, Ramesh Prabhu, the former CFO of the company, is accused of embezzling approximately 270.43 crore rupees from the company over the past five years. An FIR (First Information Report) has been filed with the Marathahalli police station in Bengaluru. It is alleged that Prabhu used this money for his personal futures and options (F&O) trading, causing significant financial losses to the company.
Company Founder Expresses Regret
Prithvi Singh, the founder of Gameskraft, described this decision as “the toughest decision in the company’s history.” He stated that this move does not reflect on the skills or dedication of the employees, but rather is due to external circumstances. The company will provide full support to the affected employees during their transition.
Layoffs Could Increase
The company also stated that this process is ongoing and further structural changes may be necessary in the future. Therefore, the number of layoffs could increase.
Benefits for Laid-Off Employees
Employees who are being laid off will receive severance pay according to their employment agreement. They will also receive payment for their unused leave. Group health insurance will remain in effect until March 2026 or until the employee finds new employment. Employees will also have the option to convert their corporate health insurance policy to an individual policy.
The Impact of the Ban on the Gaming Industry
Gameskraft has joined the ranks of several other real money gaming companies that have recently carried out large-scale layoffs. India’s new online gaming law has banned all online games of chance where users deposit money with the expectation of winning. This has had a profound impact on the entire industry.
Other Companies Also Laid Off Staff
A23 Rummy (Head Digital Works) has laid off 500 employees, which is two-thirds of its workforce.
Zupee has also let go of 170 employees.
Mobile Premier League (MPL) may lay off 60-80% of its India team employees (approximately 500-600 employees).
Baazi Games (backed by Nazara Technologies) has laid off more than 200 employees (approximately 45% of its workforce).
Games24x7 has also conducted layoffs.
