TikTok has joined the ranks of tech companies experiencing layoffs, with approximately 60 employees let go as part of a cost-cutting initiative. This move is in response to the broader economic slowdown affecting the tech industry, where major players like Google, Amazon, and Meta have also implemented job cuts.
According to NPR, TikTok has joined the list of tech companies, including Google, Amazon, Unity, and Discord, that have reduced their workforce this year. The short-form video hosting platform reportedly laid off at least 100 employees in various locations, including Los Angeles, New York, Austin, and abroad. The specific impact on different departments remains undisclosed.
Reports suggest that TikTok is implementing these job cuts to streamline expenses, with a focus on reducing costs amid economic challenges. A company spokesperson confirmed the dismissal of approximately 60 workers, primarily from the sales and advertising department, as part of a regular restructuring plan. TikTok has scheduled a town hall session for further communication following the layoffs.
As one of the top apps in the U.S. with around 7,000 employees, TikTok’s parent company, Chinese tech giant ByteDance, employs over 150,000 people globally. However, facing challenges in the turbulent tech industry, TikTok is adapting by restructuring its operations and reducing costs.
The tech industry is currently navigating an economic slowdown and transformation, marked by substantial investments in new generative AI tools. This shift has prompted companies to undertake restructuring measures and cost-cutting initiatives to enhance efficiency. The industry faced a significant setback in 2023, losing around 260,000 jobs due to the pandemic, making it the worst year for tech employment.
As the tech industry grapples with ongoing challenges in 2024, major companies like Google and Amazon have already announced layoffs. Google initiated the year by laying off over 1,000 workers across various departments, emphasizing the need to reorganize and focus on key projects. YouTube, a Google subsidiary, also reduced around 100 jobs to address the slowdown in ad revenue and competition from platforms like TikTok.
Amazon announced job cuts in its Prime Video and Amazon MGM Studios divisions as part of its operational efficiency plan. Meta, the company behind Facebook, Instagram, and WhatsApp, reduced its headcount by 60, primarily in technical program management, as it simplifies its structure and pursues its metaverse vision.
Adding to the wave of layoffs, Riot Games, the creator of the popular video game League of Legends, revealed plans to cut 11% of its staff, affecting about 530 employees, as part of cost-cutting and restructuring efforts.