TikTok has made the decision to initiate a round of layoffs this month affecting around 60 employees, primarily in sales and advertising roles. The news, initially reported by NPR, highlights the ongoing difficulties faced by major players in the tech industry.
Based in Los Angeles and Singapore, TikTok has consistently maintained its position as the leading app on the iOS App Store’s entertainment charts and holds the fifth spot among all free apps, surpassing competitors such as Instagram and Snapchat. However, the recent workforce reduction indicates that even industry leaders are not immune to the challenges posed by the current economic environment.
The trend of layoffs extends beyond TikTok and is observable across various social platforms and consumer tech companies this year. Amazon, for example, implemented cuts across Twitch, Audible, Prime Video, and MGM Studio. Google, a tech giant, has laid off over 1,000 employees in hardware and advertising sales, along with an additional hundred employees at YouTube. This trend is not exclusive to TikTok, as other popular apps like Duolingo and Discord have also announced workforce reductions.
Comparatively, last year saw the first quarter saturated with tech layoffs, and the trend appears to persist into 2024. Companies, including TikTok, seem to be implementing cost-cutting measures as they navigate the uncertainties of the evolving tech landscape at the beginning of the new calendar year. As TikTok undergoes internal adjustments and addresses external challenges, industry stakeholders closely monitor the implications for one of the world’s most influential social media platforms.
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