Gameskraft to lay off employees amidst online gaming ban, alleged fraud by ex-CFO
The layoffs come amidst reports of financial fraud allegedly committed by Gameskraft's former CFO and a business-wide shutdown following the online gaming ban.
In a double whammy, Gameskraft on Thursday said it will lay off 120 employees as part of a restructuring exercise, at a time when the company is reeling from the recent online gaming ban and faces reports of alleged fraud by its former CFO.
Following the implementation of the Promotion and Regulation of Online Gaming Act, 2025, most gaming startups in India have shut down their real-money game offerings and expanded their free-to-play options or shifted focus to other verticals.
This has resulted in massive layoffs across the industry, including companies like fantasy game platform MPL, Ludo game platform Zupee, and Head Digital Works, the parent company of A23 gaming, among others.
Amidst the ban, while many companies have turned to short-form video content, e-sports, and sports streaming, among others, to stay afloat, Gameskraft has had to completely shut its business. “As the business continues to evolve in response to external realities, further structural changes may be required,” the company noted.
“While this (layoffs) step is driven entirely by the external environment and the need to adapt to a new reality, it in no way reflects on their talent or dedication. Our respect for our people remains unchanged, and we will try our best to support them as they transition into their next chapters,” said Prithvi Singh, Founder and CEO, Gameskraft, in a statement.
The company said the group health insurance cover provided to employees is expected to remain active until March 2026 or until the individual joins a new employer. Additionally, the company will also prioritise affected employees as new roles emerge within the firm.
These layoffs also come when Gameskraft has filed a first information report (FIR) against its former CFO, Ramesh Prabhu, who has been accused of diverting over Rs 250 crore of company funds for personal futures and options (F&O) trading between FY20 and FY25, leading to the company being forced to write off Rs 270.43 crore in its FY25 financial statements.
According to reports, in March 2025, Prabhu sent a voluntary confession to the company, after which he was subsequently fired.
Edited by Suman Singh