TikTok’s U.S. Employees Will Keep Their Jobs Even If The App Is Banned

Posted by Admin January 16, 2025 Jobs

Topline

As TikTok staffers await the fate of their app in the United States, the company has reassured its workers that their jobs are safe, even if the platform goes dark on Sunday, according to an internal employee memo obtained by the Verge.

With approximately 7,000 employees in the U.S., TikTok’s leadership team is preparing for various … [+] scenarios while maintaining a commitment to supporting its staff during this uncertain period.

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Key Facts

With approximately 7,000 employees in the U.S., TikTok’s leadership team is preparing for “various scenarios” while maintaining a commitment to supporting its staff during this uncertain period.

The social media company stressed that the wellbeing of its employees is a “top priority,” the note stated.

TikTok has assured its U.S. workforce that their “employment, pay, and benefits are secure,” and that its offices will continue to operate, even if a resolution is not reached by the January 19 deadline.

The company emphasized that the legal challenges primarily impact the U.S. user experience, not the employment infrastructure of TikTok’s workforce, since it is a global platform.

Big Number

Wedbush analyst Dan Ives told CBS MoneyWatch that TikTok’s U.S. operations is valued at $100 billion, primarily due to its sophisticated algorithm that curates personalized content for users.

Key Background

President Joe Biden’s administration is reportedly actively seeking ways to prevent TikTok from being shut down on Sunday, according to NBC News. An administration official stated that U.S. users should not anticipate an immediate ban on the app. Meanwhile, President-elect Donald Trump, who assumes office the day after the ban is set to take effect, is contemplating an executive order that would temporarily suspend the ban’s enforcement for 60 to 90 days, the Washington Post reported. This potential suspension would provide the incoming administration time to explore alternative solutions or find a buyer for TikTok’s U.S. operations. Late last month, Trump urged the Supreme Court to postpone the impending TikTok ban, stating that he possesses the “dealmaking expertise” and “political will” to broker a resolution that would address national security concerns while preserving the platform.

What We Don’t Know

TikTok faces substantial revenue losses if it loses access to American users. Despite the assurances from the company, the long-term impact on job security remains uncertain. TikTok’s loss of revenue from the U.S. market could affect its overall financial stability, potentially leading to future workforce adjustments.