Big tech layoffs continue with TikTok layoffs 2024. The exact number of people affected by TikTok’s 2024 layoffs remains unclear, but the cuts are described as affecting a “large percentage” of its 1,000 global employees in the operations and marketing teams.
What is the reason for these layoffs, and what is happening to TikTok? Let’s take a closer look and find out!
Context and background of the TikTok layoffs 2024
TikTok, owned by Chinese company ByteDance, has been under intense scrutiny from the U.S. government. In early 2024, President Joe Biden signed a law that bans TikTok in the United States unless it is sold to a U.S.-based company. This legislation intensified the pressure on ByteDance to make strategic adjustments to comply with or circumvent the ban.
In response to the U.S. government’s actions, ByteDance filed a lawsuit claiming that the ban violates the First Amendment rights of American users.
Our statement on the latest TikTok legislation: This bill is an outright ban of TikTok, no matter how much the authors try to disguise it. This legislation will trample the First Amendment rights of 170 million Americans and deprive 5 million small businesses of a platform they…
— TikTok Policy (@TikTokPolicy) March 5, 2024
Despite the legal battle, ByteDance has publicly stated it does not plan to sell TikTok or its underlying algorithm. However, reports suggest the company might be considering selling parts of the business that do not include the algorithm, potentially as a way to mitigate U.S. government concerns.
TikTok layoffs 2024: Details
The Information first reported on the impending layoffs, which were scheduled to begin on a Wednesday and continue into Thursday. These layoffs are unusual for TikTok, as the company has generally avoided large-scale downsizing.
Scope and scale
- The layoffs are expected to affect a substantial portion of TikTok’s 1,000 global employees, particularly within the operations and marketing departments.
- Notifications to affected employees are to be sent out late Wednesday night and early Thursday morning.
Affected departments
- Operations and marketing teams: The primary targets of the layoffs. These departments handle essential functions, including promotional activities, market analysis, and logistical support.
- Global user operations team: This team, responsible for user support and communications, will be disbanded. Employees from this team who are not laid off will be reassigned to other departments such as trust and safety, marketing, and product development.
Financial and operational impact of the TikTok layoffs
TikTok reported having 7,000 employees in the U.S. in 2023, along with a user base of 150 million in the country. The U.S. market is particularly crucial for TikTok, generating approximately 80% of its $20 billion revenue in 2023.
The layoffs could have significant implications for the company’s operational capabilities and revenue generation, especially given the reliance on the American market. However, if they are thinking about selling TikTok, it might not be their problem.
ByteDance’s potential consideration of selling parts of TikTok, excluding its core algorithm, indicates a strategic shift to address the geopolitical challenges. The layoffs could be part of a broader effort to streamline operations and make the company more appealing to potential buyers or to align better with regulatory requirements.
The layoffs at TikTok are part of a broader trend of downsizing in the tech industry. Major companies like Tesla, Google, and Microsoft have also announced significant job cuts in recent months. This trend reflects the industry’s response to economic uncertainties, shifting market dynamics, and the need for strategic realignments.
Featured image credit: Eyestetix Studio/Unsplash
