The layoffs come in response to recent legislation in the United States. President Joe Biden recently signed a House bill that bans TikTok's operation in the US unless it is sold to an American company. This move has placed ByteDance, TikTok's parent company, in a difficult position.

In reaction to the US government's actions, ByteDance has filed a lawsuit, arguing that the ban violates the First Amendment rights of American TikTok users. Despite ByteDance's initial stance against selling TikTok or its proprietary algorithm, the company is now reportedly open to considering sales that exclude the algorithm. This change comes as ByteDance faces increasing pressure from the US government.

The impending job cuts are expected to mainly affect TikTok's content and marketing departments, according to anonymous employees who spoke to The Information. Notifications regarding the layoffs are scheduled to be sent out late Wednesday and early Thursday.

Additionally, TikTok plans to dissolve its global user operations team, which is responsible for user support and communication. Staff members from this team will be reassigned to other departments within the company, including trust and safety, marketing, content, and product teams.

TikTok has a significant presence in the US, employing around 7,000 people as of 2023. The platform is extremely popular in the country, boasting 150 million American users. The US market is a major revenue generator for TikTok, contributing about 80% of its $20 billion revenue in 2023.