TikTok begins layoffs in restructuring: report

TikTok begins layoffs in restructuring: report

  • TikTok has begun laying off workers as part of a company-wide restructuring, Wired reported Monday.
  • Prior to these cuts, TikTok’s staff had projected strength despite a massive slowdown in the tech and advertising sectors.
  • It comes as the app faces new political pressure in the US.

TikTok has begun laying off employees as part of a company-wide restructuring, Wired reported Monday, including “five people with knowledge of the process.”

US-based TikTok worker David Ortiz, who lists his title as “monetization product leader” on LinkedIn, wrote in a post on Monday that his job was “being eliminated in a much larger reorganization effort.”

Wired’s report did not say how many TikTok workers have been let go, or the total number of jobs at risk as part of the restructuring. A source told Wired that the number of layoffs will be fewer than 100. TikTok did not respond to Insider’s multiple requests for comment.

Ahead of the cuts, company executives had projected strength despite a massive slowdown in the tech and advertising sectors. The company’s head of global business solutions, Blake Chandley, told CNBC in June that the platform hasn’t seen the ad market downturn or some of the headwinds other companies have faced.

“I’ve heard the advertising market is going to be down 2% to 6%, but we haven’t seen that,” Chandley said. “We’re not seeing the headwinds that anyone else is seeing.”

Layoffs have spread through the Chinese tech sector in recent weeks, including TikTok’s parent company ByteDance, as the Wall Street Journal previously reported.

Other manufacturing economy and advertising-focused firms have also recently laid off workers or slowed hiring. Meta Platform, which owns Facebook and Instagram, put a hiring freeze in May as it tried to re-prioritize its business. And Snapchat-maker Snap Inc. issued a profit warning the same month that dragged down advertising and social-media stocks at the time.

The layoffs come as TikTok faces a new wave of political attacks in the US. Congress and FCC officials have questioned in recent weeks whether the agency is effectively protecting US user data from the Chinese government. A BuzzFeed News report in June revealed that engineers at TikTok’s parent company, ByteDance, repeatedly accessed US user data from inside China.

This story is developing.

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