ByteDance starts employee layoffs after India announces permanent ban

bytedance-starts-employee-layoffs-after-india-announces-permanent-ban

ByteDance Co. Ltd., parent company of the popular video-sharing social networking platform TikTok, has reportedly started cutting down its workforce in India, after the country decided to extend a ban on the Chinese app.

For those unaware, the Indian Ministry of Electronics and Information Technology had initially imposed a ban on TikTok as well as other 58 additional Chinese apps in June 2020 over high concerns regarding national security. India has now announced its decision to extend the ban, after the companies reportedly failed to convince the authorities of their compliance with essential privacy and security requirements.

According to TikTok, the company has always complied with the local laws and is in process of reviewing the current notice sent by the Indian government. TikTok added that despite its several efforts, the company has not received any clear direction on when and how its platforms can be reinstated, and hence is compelled to lay off around 2000+ employees.

Reportedly, TikTok’s VP Blake Chandlee and Interim CEO Vanessa Pappas have informed their employees through a letter that they will soon start cutting jobs and are unsure whether the company will be resuming operations in India. However, the letter did not mention how many jobs the company is planning to let go.

Several TikTok employees have been seeking jobs for a while now, with Indian rival apps looking to hire from the renowned Chinese platform. Sources confirmed that some staff have reportedly claimed to have received a pay hike despite the ban.

TikTok’s parent ByteDance has doubled its revenue in the year 2020, regardless of the troubles in the U.S. and Indian markets, sources claimed. The company amassed revenues worth USD 35 billion in 2020, with the operating profit reaching USD 7 billion as compared to USD 4 billion it generated in the year 2019.

Source Credits –

https://www.reuters.com/article/us-bytedance-india/bytedance-cuts-india-workforce-unsure-of-comeback-after-app-ban-internal-memo-idUSKBN29W0JR