Caixin
Jan 28, 2021 07:57 PM
BUSINESS & TECH

TikTok to Make Layoffs Following Permanent Ban in India

What’s New: TikTok, the wildly popular global edition of the similarly popular Chinese Douyin short video app, on Wednesday informed staff in India of impending layoffs.

The cuts will affect more than half of the app’s operational staff for the India market, equating to about 30 employees, Caixin has learned from a source close to the India team.

That figure is a relatively small portion of the hundreds of people TikTok employs in the country. Those people perform roles ranging from product development to inspectors, with many supplied by outsourcing companies. It was not immediately clear if any of those other staff would also be cut.

Background: TikTok’s move comes a week after it was informed that the Indian government would permanently ban the service from the country, formalizing a temporary ban first implemented last June, according to Indian media reports. 

TikTok was just one of dozens of Chinese apps that were permanently banned, after follow-up materials they submitted to address concerns about privacy and national security failed to satisfy India’s telecoms regulator following the initial ban. Other banned apps include Tencent’s WeChat and Alibaba’s UCWeb browser.

New Delhi and Washington have both taken similar actions against TikTok, which is owned by tech unicorn ByteDance, and WeChat over concerns about the companies’ ability to protect user data in their respective markets. In particular they worry the companies could be forced to share data from their markets with Beijing due to close government oversight of internet companies in China.

Related: India Cements Ban on TikTok, Other Chinese Apps 

Quick Takes are condensed versions of China-related stories for fast news you can use. To read the full Caixin article in Chinese, click here

Contact reporter Yang Ge (geyang@caixin.com) and editor Michael Bellart (michaelbellart@caixin.com)

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