Employees Layoff: Big news for the employees! This company is going to lay off 350 employees, know details
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MPL Layoff: Online gaming NPL (Mobile Premier League) is going to lay off 350 of its employees. The company has cited the increase in GST rates on online gaming as the reason for this retrenchment.
In an email sent to employees on August 8, Sai Srinivasan, co-founder and CEO of MPL, said that with an increase in GST to 28 per cent, the tax burden on us would increase by 350 to 400 per cent. Due to this the company has been forced to take tough decisions.
Sai Srinivasan said that apart from the employees, the main expenditure of the company is server and office infrastructure, which needs to be reduced to reduce the expenditure. In fact, on July 11, 2023, the GST Council announced the imposition of 28 percent GST on online gaming, which is going to be implemented from October 1, 2023. At the same time, online gaming companies wrote letters from the Prime Minister to the Prime Minister. Request to the Finance Minister to reconsider this decision.
However, in the GST Council meeting held on 2 August, it was decided that from 1 October 2023, 28 percent tax would be imposed on online gaming, horse racing and casino. And six months after this date, the GST Council will review the tax imposed.
However, this decision of the GST Council has increased the difficulties of companies like gaming company Dream11 and MPL and their customers. This $ 1.5 gaming industry is calling this decision of the government wrong. He believes that the burden of 28 percent will fall on the customers.
Companies will have to bear the brunt of this in the form of a decline in gaming volumes. Due to 28 percent GST, there can be a danger of losing jobs in the online gaming sector. Also, it will be difficult for Indian companies to compete with foreign companies. Due to high tax, people will refrain from playing online games. Tiger Global’s investment giant gaming company Dream 11 and MPL will have to bear the brunt of this.
(pc rights of employees)
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