TikTok, the globally renowned video-sharing platform, has joined the wave of tech companies implementing staff cuts, signalling a strategic shift in the industry. About 60 employees, primarily from the sales and advertising division, were affected by this move.
TikTok's Layoff Amidst Strong Growth
Despite its robust growth and immense popularity, TikTok is recalibrating its workforce. The layoffs, which span across various global locations, including Los Angeles, New York, Austin, and abroad, are part of what the company describes as a routine reorganization.
The Broader Context in the Tech Industry
TikTok's decision mirrors a more significant trend within the tech sector, where giants like Google and Amazon have also reduced their workforce significantly. This trend, resulting in over 10,000 job cuts in 2024 alone, follows a challenging 2023, where the industry saw the elimination of approximately 260,000 jobs.
Shifting Focus to Generative AI
The industry's pivot towards developing new generative AI tools, viewed as the next technological frontier, is a key factor driving these workforce adjustments. This shift reflects tech companies' intent to streamline operations and realign resources toward pioneering AI advancements.
Analyst Perspectives
Industry watchers attribute these layoffs to various factors, including a refocusing on artificial intelligence, pandemic-induced staff expansions, and efforts to enhance shareholder profits. While the scale of downsizing is expected to be smaller than in 2023, it signifies a strategic transformation in the tech landscape.