New Layoffs: Kavin Bharti Mittal, founder and CEO of Hike, said that the decision has been taken to lay off about 55 people, out of which 24 are temporary employees.
New Delhi. After the decision to impose 28 percent GST on online gaming, the platform ‘Hike’ related to this sector has laid off about 55 of its employees. This is one-fifth of the total workforce of the company. Prior to this, Mobile Premier League (MPL), a major company in the online gaming sector, has also recently announced layoffs.
While giving this information on August 10, Hike founder and CEO Kavin Bharti Mittal said, “About 55 people have been removed out of which 24 are temporary employees. This is about 22 percent of the total number of employees. Our business is in excellent shape but the 400 per cent jump in GST is a big blow for us.
Mittal said that the company will bear the impact of 28 per cent GST on online gaming to some extent and that is why the number of employees is being cut.
Claims to have 52 lakh monthly users
The entire team at Hike Platform is involved in the development of Rush Gaming Universe, a web 3 gaming platform. The company claims to have around 52 lakh monthly users. It has distributed an amount of $308 million annually as winning amount.
MPL also trimmed
Prior to this, gaming unicorn MPL has also recently announced layoffs to reduce the cost burden due to the 28 per cent increase in GST. The company has decided to lay off about half of its Indian team or about 350 employees. Apart from this, some small-sized gaming start-ups like Quizzy Quizy have announced the closure of their business.
