TikTok has joined the growing list of tech companies that are laying off employees, with around 60 employees being let go in an effort to reduce costs. The move comes amid a broader economic slowdown in the tech industry, as giants like Google, Amazon, and Meta have also been cutting jobs.
Reports from NPR indicate that the short-form video hosting platform has let go of at least 100 employees in various locations, including Los Angeles, New York, and Austin. The precise impact of the layoffs on different departments is still unknown.
Employees at the video-sharing platform say TikTok is cutting jobs to reduce its expenses, according to the report. A spokesperson for the company also confirmed that around 60 workers, mostly from the sales and advertising department, were let go as part of a regular restructuring plan. Following the layoffs, TikTok also plans to hold a public session on Tuesday.
With around 7,000 employees in the United States, TikTok is among the top apps in the country. Its parent company, Chinese tech giant ByteDance, employs over 150,000 people worldwide. However, amid the economic slowdown and disruptions in the tech industry, TikTok is also facing challenges, and is therefore moving to reduce its workforce and restructure its operations to reduce costs.
It is worth noting that the tech industry is going through an economic slowdown as well as a major transformation, as it is heavily investing in new generative AI tools, which are seen as the next big thing in tech. This has led companies to take restructuring measures and cut costs to operate more efficiently. The sector already took a major hit in 2023 when it lost around 260,000 jobs due to the pandemic, representing the worst year for tech hiring ever.
However, 2024 is not far behind the consequences, and the industry is still reeling with layoffs and thousands of jobs lost at major tech companies like Google and Amazon this year, according to Layoffsi, a site that tracks tech layoffs. This year, Google started 2024 with laying off over 1,000 employees from various departments, such as hardware and engineering, citing the need for reorganization and focus on core projects. Its CEO, Sundar Pichai, has also hinted at more layoffs in the future, as the company faces increasing competition and regulatory hurdles.
YouTube, a subsidiary of Google, also cut around 100 jobs, particularly in the areas of music, sports, media, movies, and TV, to deal with the slowdown in advertising revenue and the rise of competitors like TikTok. Amazon followed suit by announcing layoffs in its Prime Video and Amazon MGM Studios divisions as part of an operational efficiency plan.
Meta, the company behind Facebook, Instagram, and WhatsApp, also reduced its headcount by 60 employees, mostly in its technical programming management, as it aims to simplify its structure and follow its changing vision.
The latest tech company to join the layoff wave is Riot Games, the maker of the popular video game League of Legends, which said it will cut 11% of its employees, or around 530 employees, as a result of cost-cutting and restructuring.