As we turn towards the business world, it is not unusual to hear of companies laying off employees. It is the most unwelcomed and unexpected event that can happen to anyone in their career. In recent times, the number of layoffs has only increased, creating turmoil amongst individuals who work in these companies and urge them to look for new opportunities. With various industries going through economic instability, layoffs have become a commonly used option as companies try to cut back on their expenses and streamline their operations to keep their head above water. In this report, we will be discussing layoff trends and focus on the Quizy Gaming company, which has recently laid off its entire workforce.
Quizy Gaming, a Gurgaon-based company, was a bootstrapped startup founded in 2018 by two young entrepreneurs. Their primary focus was on casual games that catered to the Indian population, which helped distinguish them from other gaming platforms in the market. Quizy Gaming perceived a large audience on the mobile platform, which led to their rise in popularity in a short period. Their games were easy to understand and addictive, making sure users were returning to play for more. The company prided itself on its fast-paced work environment and its team of young professionals who worked with unwavering dedication to provide gamers with their dose of entertainment.
Quizy Gaming had a humble beginning when it was founded by two friends, Abhishek and Varun, who shared a common passion for casual gaming. They started developing unique and interactive mobile games, which surprisingly garnered a lot of traction. The company took off and soon became a popular name in the Indian gaming industry. In a few years, Quizy Gaming became one of the leading names in the Indian gaming industry, all thanks to its excellent conceptualization, execution, and quality products.
Funding and Investors
Quizy Gaming was predominantly a bootstrapped company, meaning the founders funded their operations from their own savings early on. After a while, the company relied on seed investment to support their business growth. The company received a seed funding of $0.27 million from prominent investors, which helped fuel their expansion.
Quizy Gaming was performing well in the gaming industry, generating significant revenue and holding a good market share. They had introduced innovative games with exceptional graphics that were interactive and engaging, ultimately leading to them gaining increased popularity within the industry. However, what seemed like a bright future soon took a wrong turn for this startup.
Reasons for Layoffs
Recently, the company shocked its employees when it laid off all its staff due to economic instability. A prominent reason for this was the hike in Goods and Services Tax (GST) on online gaming companies, which hit Quizy Gaming hard. The 18% GST that was imposed on online gaming companies made it difficult for startups in the gaming industry to sustain, given that the margins are already very tight. The management feared that the recent hike in GST would lead to revenue losses, and the company would struggle to survive. This decision was a big blow for all the employees, and many were caught off-guard when they were informed of the layoffs.
Number of Employees Laid Off
Quizy Gaming laid off its entire workforce, which reportedly impacted around 30 employees. Such a decision would be devastating for the employees, who would now be forced to look for new jobs.
Statement from Company Stakeholders on Layoffs
Abhishek and Varun, the founders of Quizy Gaming, expressed their deep regret on the layoff situation and the impact it would have on their staff. “It is with an extremely heavy heart that we acknowledge the situation at Quizy Gaming during these difficult times. It has been a rollercoaster ride for us, and we are sure that it has been one for you. We have grown our team with utmost dedication and have always believed in the company and the team. It is purely the current economic circumstances that have pushed us into this decision, and we will do everything in our power to help our team members find new job opportunities. We thank each of you for your contributions and dedication to the company and industry and will be forever grateful for your support.”
The impact of layoffs extends beyond the immediate loss of income. It takes a significant emotional toll on the worker, their families, and the community at large. It is hoped that the current economic situation improves so that companies need not resort to such measures. While Quizy Gaming had a promising future in the Indian gaming industry, their faltering due to sudden GST increase highlights how uncertain things can become in business. It’s essential to keep track of industry trends, changes in economic policies, and revenue streams if we want to stay afloat. Unternehmen, too, must take steps to ensure that their operations are as efficient as possible as that can pay dividends if the going does become tough.