TikTok fires India staff, shuts office 3 years after ban
Popular short video app TikTok, which was banned in India in 2020, has decided to shutter its office in the country. The company has also handed out pink slips to all 40 employees. TikTok, once the most downloaded app on Android in the country, was banned due to national security reasons. It is now staring at a similar fate in the US.
Why does this story matter?
TikTok has been trying to get on the good side of the Indian government since it was banned. Last year, there were murmurs about the company trying to re-enter India with a local partner. The decision to close its office in the country underlines the ByteDance-owned app's inability to reach any understanding with the Indian government.
Employees will get 9 months of severance pay
Employees that worked in TikTok's India office were informed about the company's decision to axe them through a call earlier this week. Per The Economic Times, February 28 will be their last day in the company. The team was given feelers to look for other jobs much before this. The laid-off employees will get nine months of severance pay.
Indian office looked after operations in Brazil and Dubai
What did employees at TikTok's India office do since the app's ban in the country? The India office acted as a remote sales support hub. The team in India mainly took care of the company's operations in Brazil and Dubai. The company gave hints to employees that its operations in India may not be renewed due to the government's tough stance.
We will support the employees during this difficult time: TikTok
"We have taken the decision to close our India remote sales support hub, which was put in place at the end of 2020 to provide support to our global and regional sales teams," a TikTok spokesperson said. "We greatly appreciate these employees and their impact on our company, and will ensure they are supported at this difficult time," they added.
There are calls for banning TikTok in the US
It was TikTok's Chinese origin that led to its demise in India. Now, the app is in a similar situation in the US as well. The critics of the app have called for a nationwide ban in the US. There are concerns along party lines that the Chinese government might use the app to access the data of US citizens.