TikTok cuts thousands of jobs in ANZ - These teams bear the brunt
In a significant restructuring move, TikTok announced layoffs affecting its operations in Australia and New Zealand (ANZ) as part of a broader global downsizing effort.
The social media giant, known for its short-form video content, is disbanding its global operations team, impacting roles in user support, operations, content creation, and marketing.
Reports indicate that TikTok's global layoffs will affect approximately 1,000 employees worldwide, although specific numbers for the ANZ region were not disclosed by TikTok ANZ officials.
The cuts come amidst ongoing strategic adjustments aimed at optimizing operations and sustaining growth in a competitive digital landscape. "Australia remains a pivotal market for TikTok, where we currently employ hundreds of people across our offices in Sydney and Melbourne," a TikTok spokesperson confirmed to AdNews.
"As with all companies, we continuously evaluate our business to align with evolving market dynamics and ensure sustained growth." The decision to reduce staff globally underscores TikTok's response to operational challenges and regulatory pressures.
The app faces bans in several countries, with the United States potentially joining the list following legislative actions under the Biden administration. In April, President Biden signed legislation requiring ByteDance, TikTok's parent company, to divest its American operations within a year or risk a nationwide ban, citing national security concerns.
The layoffs at TikTok ANZ are part of broader job cuts across the media industry, where companies are grappling with a downturn in local advertising revenues and shifts in digital media consumption habits.
Major players like Seven West Media, Nine, News Corp, and Southern Cross Austereo (SCA) have recently announced significant workforce reductions primarily affecting marketing and sales departments.
Seven West Media, a prominent Australian media conglomerate, announced the elimination of 100 positions, while Nine anticipates cutting 200 jobs.
Similarly, News Corp reported over 80 job cuts, and SCA has also implemented workforce reductions in response to financial pressures exacerbated by changes in advertising spending patterns and revenue streams.
The industry-wide job cuts reflect a broader economic challenge facing media organizations, exacerbated by a decline in advertising revenues and disruptions in revenue-sharing agreements with major digital platforms like Meta, formerly Facebook.
These platforms have faced scrutiny and regulatory actions, impacting their contribution to news outlets and media companies globally.
As TikTok navigates these challenges, the company remains committed to its operational footprint in Australia and New Zealand, emphasizing the importance of these markets despite the workforce adjustments.