Bengaluru-based online gaming company Gameskraft has laid off more than 400 employees, marking one of the most significant workforce reductions in India’s gaming sector this year. The decision follows a challenging period for the real-money gaming industry, which has been facing strict regulatory changes and internal financial pressures. For many employees, the news came unexpectedly, raising concerns about stability in the rapidly growing but heavily scrutinized online gaming space.
Regulatory Changes Push Companies to Restructure
One of the main reasons behind the layoffs is the changing regulatory environment for online real-money gaming in India. New rules introduced in the past few months have made it tougher for companies to offer games in which users deposit money and play for monetary rewards. Gameskraft was widely known for such gaming platforms and generated significant revenue from them. However, with the new regulations, several of the company’s gaming operations had to be scaled down or discontinued. This directly impacted the need for large teams, forcing the company to downsize to stay operational.
The company stated that the layoffs were part of a strategic restructuring effort to ensure business continuity. In simpler terms, the leadership needed to reorganize how the company works so it can remain active and sustainable in the long term. These changes are expected to reshape how Gameskraft builds, markets, and maintains its gaming platforms going forward.
Financial Challenges Add to the Pressure
Alongside regulatory issues, the company has also faced financial difficulties. Reports suggest the company experienced internal financial setbacks that made the business environment even more complicated. When a company earns less than expected or loses money in key areas, it must adjust its operations to reduce expenses. One of the major ways companies do this is by cutting down on staff. This is never an easy choice, but Gameskraft stated that the decision was necessary to remain stable in the future.
Despite the layoffs, the company tried to support affected employees by offering severance packages, extended health insurance, and job placement assistance. While this support has been helpful, the emotional and financial impact of job loss is still significant, especially for those who had been working with the company for many years.
A Leaner Team and a New Direction
With the workforce reduced, the company is now focusing on building a more efficient operating structure. Instead of large teams working on numerous real-money gaming projects, Gameskraft may now turn towards skill-based games or free-to-play formats that do not involve direct cash winnings. This shift could open the door to new creative projects, though the pace of development is likely to be slower than before.
Impact on the Indian Gaming Industry
Gameskraft’s layoffs reflect a broader shift happening across India’s online gaming industry. Many companies that built their growth around real-money gameplay must now rethink their business models. The industry is moving into a phase where compliance, responsible gaming practices, and sustainable revenue strategies are becoming more important than rapid expansion. While this transition may feel difficult now, it could lead to a more stable and balanced gaming ecosystem in the future.