What is the reason for TikTok layoffs?

TikTok plans to lay off a significant portion of its operations and marketing workforce, according to current employees who briefed CNN. The global layoffs will impact teams responsible for user support, communications, content, and marketing. As part of this restructuring, TikTok’s global user operations team will be dismantled, with remaining employees reassigned to trust and safety, marketing, content, and product teams.

The Information first reported the news, but TikTok has not responded to requests for comment. Some employees were notified of the layoffs on Tuesday evening, following The Information’s report. Adam Presser, head of operations, and Zenia Mucha, Chief Brand and Communications Officer, communicated the layoff plans to the affected teams.

Are the layoffs related to TikTok’s legal issues in the U.S.?

The layoffs have been in development for nearly a year but faced delays due to recent turnover in TikTok’s marketing, trust and safety, and operations teams. These layoffs are unrelated to the legal and political challenges TikTok faces in the United States, which could potentially lead to a nationwide ban of the app.

The exact number of employees affected remains unclear. The Information reported that a “large percentage” of the approximately 1,000 employees in the affected teams could be laid off. TikTok revealed in 2023 that it employed 7,000 people in the United States alone.

Severance pay for Canadian TikTok employees

In Canada, non-union TikTok employees are entitled to full severance pay in the event of job loss due to downsizing or corporate restructuring. Severance packages can vary, potentially providing up to 24 months of pay. In Ontario, mass layoffs involving 50 or more employees may entitle TikTok workers to enhanced severance packages. Employees not receiving their full severance amount have the right to seek compensation.

At Whitten & Lublin, we recognize the stress and challenges that come with job loss or termination. Our experienced employment lawyers are here to guide you through the legal options to ensure you receive the compensation you deserve. If you have been affected by recent layoffs in Canada, contact us for a consultation. Reach us through our online portal or by phone at (647) 951-7038 today.