BYTEDANCE CUTS INDIA WORKFORCE

NEW DELHI: Short video app Tiktok, owned by Bytedance, on Wednesday said it has decided to slash staff in India after the country permanently banned the app.

Vanessa Pappas, the interim global head of Tiktok, told employees on Wednesday about the company’s decision in a letter, a copy of which was reviewed by Mint.

“As you can imagine, the magnitude of this decision is not easy. For the last several months, our management team has worked tirelessly to avoid having to separate anyone from the company. We’ve cut expenses, while still paying benefits. However, we simply cannot responsibly stay fully staffed while our apps remain unoperational,” she wrote. India first imposed the ban on Tiktok and 58 other Chinese apps in June, but extended the ban after the companies failed to convince the government that they have complied with security and privacy requirements. Pappas said the company is unsure when it will be able to return to India, but remains hopeful. The letter does not mention how many out of its 2,000-plus employees in India Tiktok will let go. Tiktok staff have been exploring jobs for a while now, with rival Indian apps looking to hire from the company. Earlier, some employees seeking anonymity had indicated that Tiktok India had given pay hikes despite the ban.

Bytedance’s revenue more than doubled in 2020, despite troubles in markets such as India and the US. Its revenues rose to $35 billion in 2020, with operating profit touching $7 billion against $4 billion in 2019.