TikTok Takes A Big Cut On Global Revenue Guidance As Online Spending Dries Up
- ByteDance Ltd-owned TikTok has slashed its worldwide revenue targets for 2022 by at least $2 billion, becoming the latest tech giant hit by a global slump in online spending.
- TikTok CEO Shou Zi Chew slashed its targets by 20% in late September in a virtual “all-hands” meeting, the Financial Times reported.
- TikTok initially projected revenues between $12 billion - $14.5 billion this year, but actual revenue will likely be closer to $10 billion.
- Also Read: TikTok Eyes Live Shopping in US While Taking Care Of National Security Concerns
- During the meeting, TikTok blamed staff for not driving enough sales in advertising and e-commerce, the platform’s primary sources of income.
- But reportedly, TikTok had overspent in other areas, from salaries to social events.
- In the same meeting, TikTok informed that the Hong Kong IPO of ByteDance was unlikely to take place in 2022.
- In October, Facebook and Instagram-owner Meta Platforms Inc (NASDAQ: META) posted declining revenues, while Alphabet Inc (NASDAQ: GOOG) (NASDAQ: GOOGL) YouTube and Snap Inc (NYSE: SNAP) both saw a slowdown in revenue growth, missing consensus.
- TikTok has undergone a restructuring of its U.S. operations following a similar leadership reorganization in Europe earlier this year.
- While headcount has increased in the U.S., hundreds of staff have exited the company globally over the past three months, according to Punks & Pinstripes Insights, though not all were lay-offs.
- TikTok’s turnover grew six-fold in Europe in 2021, but pre-tax losses were $896 million, up more than a third.
- Related: Marc Benioff led Salesforce Downsizes, Lays Off Hundreds Of Workers
- Photo by olivier-bergeron via Unsplash
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