TikTok will lay off 1,000 employees from its operations, content, and marketing teams.
Heads of operations Adam Presser and brand and communications Zenia Mucha informed staff of these organizational changes.
The company aims to boost long-term efficiency starting today (Thursday, May 30).
TikTok typically avoids large-scale layoffs, unlike other tech giants, opting for performance assessments and smaller reorganizations.
The layoffs come as TikTok faces potential bans in the US if it doesn’t sever ties with its Chinese parent company, ByteDance, by 2025.
While ByteDance has no plans to sell TikTok, it has considered scenarios for a sale without the app’s algorithm.
Last year, TikTok employed 7,000 people in the US.
The layoffs reflect the pressure on TikTok to achieve profitability.
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The company reportedly lost several billion dollars in 2023 despite generating $20 billion in revenue.
ByteDance recorded nearly $23 billion in operating profit in the first nine months of 2023.
The reorganization has been ongoing for months, leading to uncertainty and low employee morale.
In June 2023, V Pappas left the company, and CEO Shou Zi Chew appointed Adam Presser as head of operations and Zenia Mucha as head of brand and communications.
In November, Presser announced the reorganization, which left many senior leaders without clear roles and further destabilized the company.
