TikTok is reportedly planning significant layoffs, affecting a "large percentage" of its 1,000 global employees, primarily within its operations and marketing teams.
The cuts are expected to begin Wednesday, according to The Information.
This scale of layoffs is unusual for the social media platform, owned by Chinese company ByteDance, which typically implements cost-cutting measures in smaller stages.
The move comes on the heels of President Joe Biden signing a law banning TikTok in the U.S. unless sold to an American company.
ByteDance has responded by suing the U.S. government, alleging the ban violates users' First Amendment rights. While denying any plans to sell the app or its algorithm, the company is reportedly considering sales that exclude the algorithm.
Unidentified employees informed The Information that cuts will primarily target content and marketing teams, with notifications expected late Wednesday night and early Thursday morning.
The global user operations team, responsible for user support and communications, will be disbanded, and the remaining employees reassigned to other teams like trust and safety, marketing, content, and product.
In 2023, TikTok reported 7,000 U.S.-based employees and 150 million American users.
The layoffs, however, are expected to be global. Notably, the U.S. contributed approximately 80% of TikTok's $20 billion 2023 revenue, according to the Financial Times.
TikTok representatives have not responded to requests for comment on this matter.