TikTok has cut around 60 jobs, primarily in sales and advertising, amid a challenging January for tech companies. Despite congressional scrutiny over its Chinese parent company, TikTok remains the top app on the iOS App Store’s entertainment charts and holds the fifth position among all free apps.
However, data from SensorTower indicates a slowdown in growth, with monthly active users growing at 3% in 2023 compared to 12% in 2022. TikTok attributes the job cuts to reorganization, but observers speculate on potential challenges as the platform integrates TikTok Shop, launched in the U.S. in September.
Users have raised concerns about their For You page being flooded with videos promoting products from TikTok Shop and creators seeking affiliate commissions. The tech industry is experiencing widespread layoffs this year, with Amazon making cuts across Twitch, Audible, Prime Video, and MGM Studio.
Google has laid off over 1,000 employees in hardware and advertising sales, along with additional layoffs at YouTube. Other popular apps like Duolingo and Discord have also implemented workforce reductions.
As 2024 unfolds, tech companies seem to be continuing their cost-cutting initiatives initiated in the first quarter of the previous year.
