The Indian online game company Gameskraft Technologies has downsized more than 400 people, more than half of its total of over 600 employees. This large-scale organizational reorganization was triggered by regulatory challenges and internal unrest in the company, where the former chief financial officer of the company was suspected of having committed several hundred million rupees in fraud. The company confirmed that the reduction of the current round (initially 120 at the time of its launch earlier this year) had been significantly expanded, marking one of the largest layoffs in the Indian gold game industry.
In its statement, Gameskraft stated: “As part of the reorganization of the organization and after careful consideration, over 400 employees of the various teams and functions of the company were affected. This decision was based on the considerations of business continuity and was made after the implementation of the Online Game Promotion and Supervision Act 2025, which radically changed the operating environment of the genuine gold game company.” Jameskraft, located in Bangalore, India, was one of the fastest-growing online players in India. It has made government regulation of the gold game a major reason for layoffs. The new law, which bans or severely restricts cash-based games on the grounds of curbing addiction and financial risk, has subverted the business model of many leading enterprises. Gameskraft operates a popular platform for providing skills-based games. According to the company, the policy shift made it difficult for several of its core business units to sustain it, forcing the company to reassess ongoing projects, expenditures and team structures.
Despite the scale of the staff reductions, Gameskraft highlighted the implementation of comprehensive staff support measures, stating that the transition was “consensually driven”. It is noteworthy that Gameskraft filed a complaint against Prabhu with the police in September and that the Malatahali police have filed a case under various articles of the Indian Penal Code, including theft, breach of trust, forgery and falsification of accounts. Prabhu, 47 years old, was a chartered accountant who joined the company in 2018. He allegedly transferred approximately Rs.2.31 billion from the company ‘ s accounts to his personal bank account during the fiscal years 2020-2025. It is alleged that he forged investment documents and manipulated accounting records to disguise these funds as legitimate corporate transactions.
Following the failure of his speculative futures and options trade, an internal audit subsequently confirmed a loss of over Rs. 2.5 billion. Prabhu reportedly admitted misconduct to management by e-mail prior to his disappearance from the company’s office in Bangalore in March 2025. His whereabouts remain unknown. Gameskraft ‘ s FY 2025 documentation shows that the company reported an increase of 12% from Rs. 34.75 billion in FY 2024 to Rs. 38.96 billion. However, as a result of the extraordinary loss of Rs. 2,704.3 million associated with Prabhu ‘ s behaviour and the increased tax burden under the new GST system, net profits fell by 25 per cent to Rs. 7,060 million.