TikTok has recently undergone a workforce reduction of approximately 60 positions, primarily in sales and advertising, marking the latest instance of a tech company implementing layoffs in a challenging January.
Despite facing congressional scrutiny due to its Chinese parent company, TikTok, headquartered in Los Angeles and Singapore, maintains its status as the leading app on the iOS App Store’s entertainment charts and holds the fifth position among all free apps, surpassing competitors such as Instagram and Snapchat.
However, while TikTok’s user base continues to expand, recent data from SensorTower reveals a deceleration in growth. In 2022, the platform experienced a 12% year-over-year quarterly increase in monthly active users, which dropped to 3% in 2023.
Although TikTok attributes the job cuts to organizational restructuring, it is speculated that the platform is navigating challenges in integrating TikTok Shop, officially launched in the U.S. in September.
The tech industry, as a whole, has witnessed widespread layoffs in the early months of this year. Amazon has implemented workforce reductions across various divisions, including Twitch, Audible, Prime Video, and MGM Studio. Google has laid off over 1,000 employees in hardware and advertising sales, along with an additional hundred at YouTube. Other popular apps like Duolingo and Discord have also undergone staffing adjustments.
Comparatively, the first quarter of the previous year saw a significant concentration of tech layoffs, and in 2024, companies appear to be maintaining their cost-cutting initiatives at the outset of the new calendar year.
