TikTok Cuts Jobs as Tech Layoffs Continue to Mount – TikTok is cutting staff to trim expenses, as reported by platform employees, joining a recent trend of technology companies implementing workforce reductions. Around 60 employees, primarily from the sales and advertising division, were let go, according to a company spokesperson.
The restructuring, described as a routine reorganization, affected roles in Los Angeles, New York, Austin, and overseas. The company plans to hold a townhall meeting on Tuesday following the announcement of layoffs. TikTok stands as one of the most widely used apps in the U.S., boasting around 7,000 employees within the country.
Its parent company, the Chinese tech giant ByteDance, oversees a global workforce of over 150,000 individuals. Despite facing scrutiny from Washington officials due to national security concerns related to its association with ByteDance, TikTok has experienced significant growth over the years.
With over 150 million active users in the U.S., ByteDance, valued at $225 billion, is considered the most valuable private company globally. The recent layoffs at TikTok signal challenges within the tech industry. In the ongoing year, Google and Amazon, along with other prominent tech firms, have cut thousands of employees.
This trend is reflective of the entire sector reallocating resources towards the race to create new generative AI tools, viewed by many as the upcoming tech gold rush. In 2024, layoffs in the tech sector exceeded 10,000 jobs, as reported by layoffs.fyi. Following a challenging 2023, where the tech industry witnessed the elimination of approximately 260,000 jobs—marking the highest reduction since pandemic-driven mass terminations—Meta CEO Mark Zuckerberg referred to it as “the Year of Efficiency.”
The ongoing cost-trimming measures are continuing, with analysts in Silicon Valley anticipating a downsizing that is more focused and less extensive compared to the previous year. Observers in the tech industry have pointed to various factors for the job losses, including the restructuring of workforces to prioritize artificial intelligence, persistent overstaffing lingering from the pandemic, and companies aiming to enhance shareholder profits by streamlining operations.
In the beginning of this month, Twitch, owned by Amazon, reduced its workforce by a third, amounting to around 500 employees. CEO Dan Clancy explained in a blog post that the staff cuts were necessary due to the company’s “conservative” projections regarding future growth.