Following India's announcement that TikTok and 58 other apps would be banned on a permanent basis, the company's parent ByteDance has apparently announced that it would be downsizing their team in the country.
In a joint letter to the over 2,000 employees of the company in India, TikTok CEO Vaness Pappas and VP Blake Chandlee said, "we simply cannot responsibly stay fully staffed while our main apps remain un-operational." However, it is not clear how many of these employees are being let go.
TikTok and WeChat were the two big names in this list of apps banned by Ministry of Electronics and Information Technology of the Federal Indian government.
The letter further said the company had hoped that the situation would be short-lived, but that wasn't now the case, ostensibly referring to the government's latest order around Chinese-owned apps. The two senior executives said there weren't sure when (or if) TikTok could make a comeback.
ByteDance has expressed disappointment that despite its efforts of distancing from the Chinese authorities and making it known that they had little or connection to the Chinese Communist party, things hadn't worked out for the company, for whom India was among their biggest markets.
In fact, back in 2019, TikTok had announced a planned investment of $1 billion. But, with the ban and the continued diplomatic issues between New Delhi and Beijing, it looks like the end-of-the-road for ByteDance in India, at least for the near future.
All isn't lost for the ByteDancers
"We are fully aware of the impact that this decision has for all of our employees in India, and we empathize with our team. These reductions are not in any way a reflection of the quality of those impacted, nor their work. It is simply a function of the changes we must make in line with the current situation. For those impacted, we will share severance and benefits details," the mailer said.
Following this announcement, TikTok rivals in India have come forward with an offer to hire the employees who are getting laid off by ByteDance. A report published in Business Insider says companies such as Bolo Indya has ramped up its recruitment efforts to hire from the pool of TikTok staff who are being let go.
Another report in the Times of India quoted unnamed sources to suggest that TikTok India head Nikhil Gandhi was in talks with ad-tech firm InMobi, though the report said Gandhi himself did not confirm the move. It further claimed that Gandhi could be one of 100 former TikTok staffers to join the ad-tech company soon.
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The perma ban on TikTok and 58 other apps
According to MEITY, it offered the banned app developers a chance to explain themselves regarding compliance to privacy and security requirements. But the makers could not come up with satisfactory response, which seems to have initiated the permanent ban situation.
A spokesperson from MEITY said, "The government is not satisfied with the response/explanation given by these companies. Hence, the ban for these 59 apps is permanent now."
As for TikTok, a spokesperson said, "We are evaluating the notice and will respond to it as appropriate. TikTok was among the first companies to comply with the government of India directive issued on June 29, 2020. We continually strive to comply with local laws and regulations and do our best to address any concerns the government may have. Ensuring the privacy and security of all our users remains to be our topmost priority."
The Indian government has been on the offensive on the digital front ever since the bloody clash between Indian and Chinese solders at Galwan Valley on India's eastern border with China. The clashes in June resulted in casualties on both sides, and ever since New Delhi has been on crackdown mode on Chinese goods and services.
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