Layoffs have once again become a focal point of discussions among employees and leaders with several companies cutting their workforce. The latest one in the list is TikTok, which is downsizing its workforce to cut costs. 

As per media reports, approximately 60 employees, primarily from the company's sales and advertising division, were laid off. The shakeup is attributed to a routine reorganisation. The affected positions include employees in Los Angeles, New York, Austin, and overseas. 

Following the announcement of the layoffs, the company has scheduled a townhall meeting for today (Tuesday). TikTok, one of the most popular apps in the US, currently employs approximately 7,000 individuals in the country. 

Its parent company, the China-based tech giant ByteDance, has a global workforce exceeding 150,000 employees. Despite TikTok's longstanding scrutiny by Washington officials due to its ties with ByteDance and national security concerns, the platform has experienced tremendous growth. 

With over 150 million active users in the U.S., TikTok has become a major player in the social media landscape. ByteDance, its parent company, is estimated to be the most valuable private company globally, with a valuation of $225 billion. 

The recent layoffs at TikTok serve as the latest indicator of challenges within the tech industry. Several significant tech companies, including Google and Amazon, have undertaken substantial workforce reductions throughout the year. 

This trend is reflective of the entire sector's reallocation of resources towards the competitive race to develop new generative AI tools. Many view this pursuit as the next tech gold rush, driving companies to adapt their strategies and structures to stay at the forefront of technological advancements. 

In the year 2024, the tech industry has witnessed the elimination of over 10,000 tech jobs, according to the tech job tracker site layoffs.fyi. This follows a challenging 2023, marked by a substantial reduction of approximately 260,000 jobs in the tech sector – the highest since the mass terminations fuelled by the pandemic.