Online Gaming Platform Zupee has announced job cuts. The Real Money Gaming Platform has fired 170 people from the company, which is around 30 percent of their workforce. Although this was already predicted to happen ever since the government announced the Regulation of Online Gaming Bill, which is now an Act.
Zupee is one of many online gaming platforms that are staring at massive losses. The Act has disrupted their business models by banning betting of any real money on online gaming platforms. This helps in preventing the unregulated industry more stringently. However, the flipside of this is massive job losses since these companies employ hundreds of employees. Moreover, the industry has become very unsafe for the remaining companies, too.
What compensation will laid-off employees receive?
Although the leadership of Zupee has announced that the employees who are being laid off will be compensated. The compensation benefits for laid-off employees include multi-faceted assistance schemes. Primarily, the employees will receive extended notice period pay, secondly the healthcare benefits provided to them during the job will continue and lastly, they will receive priority from Zupee to consider them for rehiring if any positions are vacant in the company.
What switch is Zupee planning?
Zupee is expected to completely transform its business model. The company is likely to replicate a shift in business altogether similar to what Dream 11 parent company, Dream Sports, did. Although Dream Sports ventured into the fintech sector, but this showed the company's initiative to explore alternative opportunities. Similarly, Zupee will not to diversify its business, which is evident from some reports that have confirmed that Zupee will be entering non-real money gaming or entertainment industries
What can the government do to reduce job uncertainty?
The layoffs announced by multiple online real money gaming platforms highlight an important issue. Government regulatory changes have a swift effect on the gaming industry, which employs thousands of employees, so prior to announcing reforms, the effect it will have on jobs should be analysed.
Employees who have been laid off say that prior communication provisions should be stressed upon by the government. Not just employees but industry experts have voiced their concerns on social media platforms on how little support is provided to employees who lost jobs in the aftermath of the online gaming bill. These steps go beyond corporate decisions to understand the human impact of these.