Zupee Lays Off 200 Jobs in Second Restructuring Phase as Company Shifts to Short-Video Strategy

StartupTalky News

30 Jan 2026 — 3 min read

Zupee Lays Off 200 Jobs in Second Restructuring Phase as Company Shifts to Short-Video Strategy

Indian gaming and entertainment startup Zupee has laid off around 200 employees in a fresh round of job cuts as part of a strategic restructuring of its business. The move marks the company’s second major workforce reduction in recent months, as it moves away from its earlier real-money gaming model and shifts focus towards short-form content and new digital entertainment formats.

The layoffs impact teams across technology, product, and customer support functions, reflecting a broader reorganisation of operations. This comes after Zupee had already cut around 170 roles in an earlier phase of restructuring, taking the total number of job losses at the company to nearly 370 employees over the past few months.

Why Zupee Is Restructuring Its Business Model

Zupee was previously a major player in India’s real-money gaming ecosystem, offering skill-based games with cash rewards. However, the sector faced a major shift after the Indian government banned real-money gaming platforms under the Promotion & Regulation of Online Gaming Act, 2025. The regulatory change effectively shut down the company’s core revenue model.

Following the ban, Zupee began reshaping its strategy to survive in a post-real-money gaming environment. The company started reducing costs, shutting down cash-based gaming operations, and redirecting investments into new digital formats.

The development was first reported by Inc42, and later confirmed by multiple industry publications.

Its new focus areas include:

Short-form video content through Zupee Studio
Micro-dramas with 1-3 minute episodes
Free-to-play games
Social and community-based gaming experiences

Zupee Studio is now positioned as a central part of this transformation, producing bite-sized video content across genres such as romance, drama, thriller, and comedy. Teams associated with this vertical have not been impacted by the layoffs, showing the company’s long-term commitment to content-driven growth.

Employee Support and Layoff Assistance Measures

Zupee has announced support measures for affected employees as part of the restructuring process. These include:

Financial support beyond mandatory notice periods, based on years of service
Continued health insurance coverage for the full policy term
A ₹1 crore medical assistance fund for emergency healthcare needs
Career transition support, including referrals and job placement assistance

The company has also stated that former employees will receive priority consideration if suitable roles open up in the future as the business stabilises.

Gaming Sector Layoffs and Startup Industry Impact

Zupee’s decision reflects a broader trend across India’s startup and gaming ecosystem. Regulatory changes, rising compliance costs, and shifting consumer behaviour have forced several digital gaming companies to restructure operations and reduce workforce sizes.

The Indian startup sector has seen widespread layoffs across industries, including gaming, fintech, consumer tech, and SaaS, making workforce restructuring one of the dominant business trends of the past year.

What’s Next for Zupee?

Zupee is now repositioning itself as a digital entertainment and content platform rather than a traditional gaming company. Its future roadmap includes:

Expanding short-video content platforms
Scaling free-to-play gaming models
Building social engagement features
Exploring non-cash gaming and entertainment formats
Investing in mobile-first content experiences for Indian audiences

The company’s strategy reflects a wider shift in India’s digital economy, where startups are increasingly focusing on content, community, and engagement-based models instead of transaction-led platforms.

While the layoffs highlight the human cost of this transition, Zupee’s restructuring signals a clear pivot towards a new business identity built around content, culture, and digital entertainment rather than cash-based gaming.