After the government of India confirm the ban on TikTok and more 58 Chinese apps, the Chinese company ByteDance, developer of the app, informed employees at its office in India that it will significantly reduce its team of more than 2 people.

The ban has been in place since last year, when tension increased between neighbors due to geopolitical issues. There was a dispute with Chinese troops, near the Himalayan border, which resulted in 20 Indian soldiers killed.

Since then the Indian government classified the apps as inappropriate to the “sovereignty and integrity of India”. The situation was a kind of trigger that gave even more “ammunition” for the banning of TikTok in India.

mass dismissal

The news was announced in an internal memo signed by TikTok CEO Vanessa Pappas and Vice President of Business Blake Chandlee. After the news was released, a company spokesperson confirmed that there will be layoffs.

The company did not specify how many employees it plans to lay off in the document, but it is speculated that it will be around two-thirds. The memo said, “We had hoped this situation would be short-lived, unfortunately we have found that this was not the case.” The company also added, “We cannot remain fully staffed while our apps remain offline.” They also lamented the lack of guidance on how, if or when the app might be reinstated.

Before TikTok was banned in India, the country was one of the app's largest international markets, with over 200 million monthly active users. The loss of the Indian market could have a direct impact on ByteDance's revenue, which in 2020 was valued at around US$140 billion. The company even had plans to invest around US$1 billion in India.

TikTok has been growing rapidly as it has managed to expand its advertising market. In 2021, according to its managers, the app is expected to surpass US$6 billion.

Through which channels you reach those people, classic and out of the box. Business Insider e Reuters

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