TikTok Parent ByteDance To Downscale India workforce after app remains banned

~ YASH BANSAL

Due to the continued ban for more than six months, TikTok has decided to downsize its workforce in India. TikTok, owned by Chinese tech giant ByteDance, was temporarily banned by Indian Government in June 2020. The ban was imposed by the Ministry of Electronics and Information Technology citing the issues “prejudicial to sovereignty and integrity of India, defence of India, the security of the state and public order.” The ban was also amidst the Sino-India Border Clash.

Around 800 people out of 2000+ workforce might lose their jobs, according to the sources. Those fired will be offered severance and healthcare packages, the sources said.

Although the company did not comment on the number of layoffs. TikTok's interim global head Vanessa Pappas and Blake Chandlee, vice president for global business solutions at TikTok, sent an internal email to employees regarding the company’s future in India. A company-wide conference call was held with pan-Indian employees to announce the layoffs on Wednesday morning.

India has been one of the biggest markets for TikTok, and it has laid out plans for $1 billion in investments in the country. Following a border dispute between China and India, there has been growing tension that eventually leads to blocked imported goods and more than 200 banned apps.

Comments

Stagflation: A Threat to India

India is entering into the stage of stagflation, just 2 years ago it was expanding at 8% and emerging as a major global player, the situation has come down to this. With higher prices of food, The new citizenship act, and the central bank's target, India is meeting its slowest development in a decade. The inflation in December 2019 increased to 7.35 percent which was the highest since July 2014, which is past the RBI limit of 6%. But what led to this situation? We have had demonetization in 2016, the implementation of GST followed by many other policies but what led to this? Let's look at some facts. The consumption of volatile oil makes up about 60% of gross domestic product which puts off all the investment plans. Economic growth in the fiscal year through March 31 is set to slow to an estimated 5%. Teresa John, an economist at Nirmal Bang Equities Pvt in Mumbai, quoted “The recovery is likely to be very gradual and a stagflation scenario is likely. ” The government has...

Changing Environment For Local Business In Sri Lanka; Government Initiates The Revolution

Local industries and businesses are the backbone of the economy of any country. Additionally, Sri Lankan Government defines a local company as one with a minimum ownership of 51% of a Sri Lankan. To help these companies grow, the Sri Lankan Finance Ministry has proclaimed a circular enlisting the priorities to the local companies. Moreover, this move from the government may bring some salient alterations in the condition of the local manufacturers. The government has also come with up steps that will augment the local industries across the different domains. These domains include IT sector, construction, etc. The circular, as issued by the government includes relevant documentation regarding sourcing of resources and products. Additionally, sources point towards the fact that the government is hoping to extend support to the domestic sector and help them grow. Besides, the major focus is on the three sectors- IT software and hardware, construction and furniture and allied products. Pos...

Significance of the “Developed Country” Tag for India

By Xeena Mehta The officials of the United States Trade Representative (USTR) uphold a list of countries that categorises countries as “developing”, “developed”, and “least-developed”. Countries that are classified as “developing” have permissions to export certain goods to the U.S. without being hit by heavy legal tariffs that are bind to be imposed on goods from “developed” countries. The “developing country” tag was originated by U.S. Trade Act of 1974, to aid poor countries develop faster. World Trade Organization also acceded to grant trade benefits to countries that were classified as poor. If noticed we can see that about two-thirds of countries that are members of the WTO classify themselves as “developing” countries and avail fore deals. Any such classification of whether a country is “developing” or not is entirely objective. While the economic progress achieved by India and China have achieved over the last few decades is seen as a valid reason to get rid of their s...

Entrepreneur Digest

Search This Blog