TikTok has announced that it will lay off up to 1,000 employees worldwide.
on tuesday information This was revealed in the report citing multiple staff members. This is a considerable change in the company's practices, as the company typically sought to address crises in stages, specifically through cost-cutting stages.
ByteDance, the owner of TikTok, plans to do this in today's challenging climate following recently passed legislation in the United States.
ByteDance is in trouble after President Joe Biden recently signed a House bill banning TikTok from operating in the United States unless it is sold to a U.S. company.
Also read | Joe Biden accused of hypocrisy for signing bill banning TikTok, critics demand deletion of campaign account
TikTok takes legal action against the US government
ByteDance filed a lawsuit against the U.S. federal government in response to the ban. The company claims the ban violates the First Amendment rights of American TikTok users.
ByteDance has been adamant that it will not sell TikTok or its proprietary algorithms, but current reports suggest that information The move suggests the company is open to considering selling its algorithms without them. This potential change in stance comes as the company faces unprecedented pressure from the U.S. government.
Also read | TikTok sues US government over potential ban, claims federal law violates Constitution
According to anonymous employees who spoke to Tech News Media, the job cuts are expected to primarily affect the content and marketing departments.
Notices regarding the layoffs are expected to be announced late Wednesday night or early Thursday morning.
TikTok will also disband its global user operations team, which is responsible for user support and communications. The remaining staff on this team will move to other parts of the company, including reliability and safety, marketing, content, and product teams.
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TikTok has a large presence in the US, with approximately 7,000 employees based in the US as of 2023.
The platform boasted 150 million US users at the same time.
The US market is a major source of revenue for TikTok, accounting for about 80% of the company's $20 billion in revenue in 2023, the Financial Times reported on March 18.
