Gaming platform A23 announces layoffs after real-money gaming ban hits business
The company is the latest in a series of real money gaming companies, including Mobile Premier League (MPL) and Games24x7, to have announced massive layoffs after the new online gaming act.
Head Digital Works, the parent company of A23 that operates online rummy and poker games, is laying off 500 employees in the aftermath of the real money gaming ban.
Storyboard 18 reported on the matter first.
“At Head Digital, our people have been central to our growth and it was with careful consideration that we took the decision to let go of a significant part of our workforce. We will ensure that this transition is handled with responsibility, providing meaningful severance and support to those impacted, and we remain grateful for their contributions,” said Siddharth Sharma, CEO at Head Digital Works, in a statement.
The layoffs, which will see the firm retain 200 employees, also come amidst the firm's pursuit of legal actions to challenge the ban on real-money online games.
In the statement, Sharma added, “While recent regulatory changes necessitated this step, we are confident that a balanced framework will evolve, and we remain committed to building a resilient future and exploring new opportunities for the company.”
With these layoffs, Head Digital Works joins an increasing number of real-money gaming startups that have announced layoffs after the ban. According to reports, Mobile Premier League is letting go of about 60% of its Indian workforce, estimated to be around 300 employees. Games24x7 is reportedly letting go of about 400 employees, and Baazi Games is reducing its staff by more than 200 people.
All of these companies had real money gaming as their core offering and have been the most affected, while companies like Dream11 have diversified offerings, which cushion these firms from the extreme implications of the ban.