[News] TikTok Shop Cuts Jobs; Microsoft Reportedly Sees Largest Layoffs in Years

Tech industry layoffs are continuing. According to Bloomberg, TikTok is conducting another round of job cuts within its U.S. e-commerce unit, TikTok Shop—marking the third round of layoffs for them since April. The company did not respond to inquiries about the number of employees affected, the report adds.

The report notes that TikTok Shop implemented job cuts in April, followed by a second round in May. Despite these recent restructuring, the report highlights that TikTok Shop remains the fastest-growing segment of the social media platform and a key global priority for parent company ByteDance.

Meanwhile, TikTok’s U.S. future remains uncertain. The report notes that a 2024 law requires Beijing-based ByteDance to divest TikTok to avoid a ban. President Donald Trump has extended the deadline to mid-September and says a buyer is already in place, pending approval from the Chinese government, the report adds.

Microsoft Reportedly Cuts Jobs as AI Investments Weigh on Margins

In addition to TikTok Shop, Microsoft has also been affected by layoffs. As Reuters notes, citing The Seattle Times, the company announced on Wednesday that it will cut nearly 4% of its workforce—part of a broader effort to control costs amid significant investments in AI infrastructure. Reuters adds that Microsoft employed roughly 228,000 people globally as of June 2024.

As AP News states, the company began issuing layoff notices on Wednesday, affecting its Xbox video game business as well as other departments.

Bloomberg indicates that the latest round of layoffs will impact approximately 9,000 employees, marking Microsoft’s second major workforce reduction this year. In May, the company had already announced job cuts affecting around 6,000 workers, Bloomberg adds.

Reuters notes that Microsoft has allocated USD 80 billion in capital spending for fiscal year 2025. However, the escalating costs of expanding its AI infrastructure have strained profit margins, with the company’s cloud margin for the June quarter expected to decline compared to the same period last year, as highlighted by Reuters.

Tech Giants Trim Workforce Amid AI Investment Boom

Notably, Reuters points out that other major tech companies making significant investments in AI have also implemented layoffs. Meta announced earlier this year that it would cut approximately 5% of its “lowest performers.” Alphabet’s Google has laid off hundreds of employees over the past year, while Amazon has made cuts across multiple business units, most recently affecting its books division.

Read more

• [News] Microsoft Reportedly Lays Off Hundreds More, Adding to May’s 6,000 Cuts
• [News] Cloud Giants Face Investment Skepticism—Amazon and Google Say AI Push Continues

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