Indian gaming app Mobile Premier League will lay off 350 employees as it takes steps to “survive” a tax imposed by the Indian government on online gaming companies, according to an internal memo seen by Reuters on Tuesday.

The move comes on the back of the government’s decision last month to impose a 28 percent tax on funds that online gaming companies collect from customers.

The new rule will increase the company’s tax burden by 350-400 percent, MPL CEO Sai Srinivas said in the memo, adding that the company is revisiting expenses related to their server and office infrastructure, a Reuters report from Bengaluru and New Delhi stated.

“Adjusting to a sudden increase of this magnitude means we need to make some very tough decisions … We must take steps to bring these expenses down in order to survive and to ensure that the business remains viable,” Srinivas said.

MPL did not immediately respond to Reuters’ request for comment.

More than 100 gaming firms said in a letter to India’s finance ministry that the tax will stifle foreign investment and put $2.5 billion already invested in the sector at risk.

Indianbroadcastingworld.com has not been able to independently confirm the MPL move.