Storyboard18 reported the development first. 

The move comes after India’s enactment of the Promotion and Regulation of Online Gaming Act, 2025, which imposes a blanket ban on real-money online gaming. Last week, A23 also filed a petition before the Karnataka High Court challenging the newly enacted law. The next hearing is scheduled for September 8 at 2:30 PM.

“At Head Digital Works, 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. While recent regulatory changes necessitated this step, we are confident that a balanced framework will evolve over time, and we remain committed to building a resilient future and exploring new opportunities for the company,” said Siddharth Sharma, CEO, Head Digital Works.

The report said the decision was announced in a company-wide town hall, and the firm now has about 200 employees focused on key teams.

Meanwhile, Head Digital Works is evaluating new business opportunities beyond gaming to build a sustainable future.

Head Digital Works further highlighted the broader impact on the sector, warning of job losses affecting over 200,000 people and threats to foreign and domestic investments in India’s booming Rs 23,440 crore online skill gaming industry.

Following the ban, more layoffs are expected across real-money gaming platforms. Recently, Bengaluru-based unicorn MPL was in the news for cutting about 60% of its staff in India, roughly 300 employees.

The post A23 Parent Company Lays Off 500 Employees After RMG Ban appeared first on The India Bizz Startup News Website.