TikTok is reportedly planning to trim its workforce by a "large" percentage, primarily targeting employees in its operations and marketing departments. While the exact number of layoffs is not disclosed yet, the company plans to dissolve its global user operations team in segments like user support and communications.
As per the report by the Information, the remaining staff will be reallocated to different teams like trust and safety, marketing, content, and product development.
The extent of the layoffs is unusual for a short video-based social platform, owned by the Chinese company ByteDance, which typically implements cost-saving measures in smaller segments. Earlier last month, it laid off over 250 employees at its Ireland office. While the company frames this as part of a restructuring initiative, some employees criticised TikTok's handling of the situation as "insensitive."
This layoff report comes after President Joe Biden signed legislation threatening to ban TikTok in the United States unless it's acquired by an American company.
It is worth noting that ByteDance has already responded by suing the U.S. federal government and arguing that the ban infringes upon users' First Amendment rights. However, the company still continues to remain in murky water.
While ByteDance has previously stated that it has no intention of selling the app or its core algorithm, recent reports suggest the company is now considering sales that exclude the algorithm.
TikTok also stated earlier that, in 2023, it had 7,000 employees located in the United States. During that period, the app also disclosed having 150 million users in the US.
As per a report by the Financial Times, around 80 per cent of the company's $20 billion revenue came from the US market.
