TikTok, the popular short-form video app, is undergoing a global restructuring which has led to layoffs of hundreds of employees. This comes despite the app’s success and rapid growth – it now has over 1 billion monthly active users.
The layoffs are said to be focused on individuals and teams that managers believe are not contributing enough to the company. This could be a sign that TikTok is feeling pressure from competitors like Instagram and YouTube who have introduced their own short-form video products.
TikTok joins a slew of other major firms and startups that have stopped hiring or issued pink slips in recent weeks as concerns about an economic recession have grown. The company has recently ceased the development of its live shopping platform TikTok Shop, which was seen as a potentially significant new source of income.
It’s not all doom and gloom for TikTok though. The app is still immensely popular, particularly with younger users, and has managed to weather various storms. Only time will tell how it fares in the current climate. But one thing is for sure – the world of work is changing rapidly, and even the biggest tech giants are not immune to the effects of economic downturns.
TikTok launched in 2018 and became one of the world’s most popular apps in just a few years. It allows users to create and share short videos set to music or other audio. The app has been downloaded more than two billion times globally, according to data from App Annie.
In China, TikTok is known as Douyin. The app is owned by ByteDance, a Beijing-based internet startup that was founded in 2012. The company also owns Toutiao, a news aggregator that is one of the most popular apps in China. ByteDance has been valued at more than $275 billion, making it one of the world’s most valuable startups.
ByteDance has offices across the United States, including Mountain View, San Francisco, Los Angeles, Austin, and Chicago. The company’s U.S. headquarters are in Culver City, California.