Why is TikTok Hiring 1,000 More Amid Massive Layoffs in US Big Tech?

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TikTok Ranks 2nd After YouTube with 67% Usage Among US Teens Aged 13-17

[Image source=Pixabay]

[Asia Economy Reporter Yoon Seul-gi] While large-scale layoffs are sweeping through major U.S. big tech companies, the Chinese video-sharing platform TikTok has announced plans to increase its workforce. TikTok has long been suspected of potentially misusing information from U.S. users, and analysts suggest that this hiring expansion is aimed at dispelling such concerns.

According to CNN Business on the 22nd (local time), TikTok plans to hire about 1,000 employees at its Mountain View office in California. Earlier, TikTok CEO Shou Zi Chew stated at a forum held recently in Singapore that "the company (TikTok) is still hiring" during a discussion about layoffs at some big tech companies. He said, "We (TikTok) have always been very cautious about hiring," adding, "I believe the current stage of the company's growth aligns perfectly with our hiring pace and flow."

This move by TikTok contrasts sharply with the wave of restructuring among U.S. big tech firms. Recently, global companies such as Twitter, Meta Platforms (Meta), and Amazon have reduced or halted hiring and announced large-scale layoffs amid signs of economic slowdown caused by inflation and interest rate hikes.

Twitter laid off over 5,000 employees, more than half of its workforce, for the first time in its 18-year history. Meta, the parent company operating Facebook and Instagram, notified over 11,000 employees of layoffs. Amazon also announced plans to cut 10,000 jobs, the largest scale in its history.

While U.S. big tech companies are slimming down in preparation for an economic downturn, TikTok’s decision to expand its workforce is seen by some as having political motives. CNN analyzed this as a move to alleviate suspicions from the U.S. government, which views TikTok as a potential national security threat. The U.S. government has long been concerned that Chinese big tech companies like TikTok might hand over American users’ personal data to the Chinese government, and this hiring expansion is interpreted as a measure to dispel those fears.

Meanwhile, TikTok is currently considered a highly preferred platform in the U.S. According to a survey conducted by the U.S. research organization Pew Research in August, which targeted 1,300 teenagers aged 13 to 17 in the U.S., 67% responded that they have used TikTok, ranking second after YouTube (95%). Additionally, TikTok reportedly surpassed 1 billion monthly active users last year, marking explosive growth compared to Facebook, which took 9 years, and YouTube, which took 7 years to reach 1 billion users.

This content was produced with the assistance of AI translation services.