TikTok is expected to make cuts to its global staff, in another blow for the popular social video app as it faces the threat of a new law that would ban its service in the U.S. if its Chinese owner doesn’t divest.
The layoffs are expected to affect employees in content and marketing and user operations, according to technology-focused news outlet the Information, which first reported on the looming job cuts. TikTok did not immediately respond to a request for comment.
Some U.S. leaders have raised security concerns about TikTok and its parent company ByteDance’s ties to China. ByteDance and TikTok have said the new law “offers no support for the idea” that TikTok’s Chinese ownership poses national security risks.
An unnamed TikTok employee told CNN that the workforce reduction was not related to the potential ban in the U.S.
The cuts come as tech companies have shed their workforce this year to reduce their costs and, in some cases, prepare to hire more people skilled in emerging artificial intelligence tech.
It’s unclear how many layoffs will occur at TikTok’s U.S. headquarters in Culver City. TikTok employs roughly 500 people in Culver City, according to city data.
TikTok has launched legal battles to stop the government from going forward with its ban of the company’s U.S. operations. The firm sued the U.S. government and funded a separate legal challenge led by TikTok creators. Both petitions said the move to ban or force a sale of the app violates 1st Amendment free speech protections.
