Introduction
In recent times, the news of layoffs in various organizations has been quite rampant. One of the companies that have recently been in the news for laying off employees is MPL. MPL is an Indian-based company with its headquarters in Bengaluru. It operates in the consumer industry and has been in operation for a while. The company has been performing quite well over the years and has gained a reputation in the industry. However, recent events have led to the company laying off some of its employees. In this blog post, we will look at the details of the layoffs, reasons, and other details that led to this decision by the company.
Company Background and Overview
MPL is a leading player in the Indian consumer industry, with its focus mainly on online gaming. The company was founded in 2018 by Sai Srinivas Kiran G and Shubham Malhotra. MPL offers a platform for people to play skill-based games and win money. The company operates in a niche market, and its focus on mobile gaming has helped it gain a strong hold in the Indian market.
Funding and Investors
MPL has raised significant investment over the years from various investors. The company has raised $375 million in funding to date from investors such as Sequoia Capital, Times Internet Limited, and GoVentures. Its recent funding round, which took place in January 2021, saw the company raising $95 million. This round was led by Composite Capital and Moore Strategic Ventures.
Performance Overview
MPL has been performing quite well over the years, and this can be attributed to its unique business model. The company has been growing at a steady pace, and its focus on mobile gaming has helped it gain market share. According to reports, the company had a revenue of $10 million in 2019 and is expected to grow even further in the coming years.
Reasons for Layoffs
Despite the company’s impressive performance, MPL has recently laid off some of its employees. The layoffs were announced on 8th August 2023, and a total of 350 employees were affected. The reason for the layoffs was due to the new tax proposal by the GST Council, which proposed a new 28% tax on online gaming. The increase in taxes has put pressure on companies in the gaming industry, and MPL is no exception. The increase in taxes has led to a decline in revenue for the company, and this has forced the company to lay off some employees. However, the company has promised to support the affected employees by providing them with outplacement services to help them find new employment opportunities.
Statement from Company Stakeholders
Following the announcement of the layoffs, various stakeholders of the company have issued statements. One of the co-founders of the company, Sai Srinivas Kiran G, stated that the decision to lay off employees was not an easy one. He went on to add that the company had to make difficult decisions to secure its long-term future. Additionally, the company’s investors have also issued statements expressing their support for the company. They believe that the company is taking the right steps to navigate through the current challenges and emerge even stronger in the future.
Conclusion
In conclusion, MPL is a leading player in the Indian consumer industry, with a focus on mobile gaming. The company has been performing quite well, and its unique business model has helped it gain a strong hold in the Indian market. However, recent events have led to the company laying off some of its employees. The increase in taxes has affected the revenue of MPL, and this has put pressure on the company. Despite this, the company is taking the necessary steps to navigate through the current challenges and emerge even stronger in the future.
