TikTok lays off employees in India as the ban becomes permanent

The popular short video app announced on Wednesday that it will cut workers in India after “it has not been given a clear direction on how and when our apps could be reset.”

“We deeply regret that after supporting our more than 2000 employees in India for more than half a year, we have no choice but to reduce the size of our workforce,” a TikTok spokesman said in a statement.

TikTok, owned by Beijing-based ByteDance, did not say how many workers would be affected and did not immediately respond to a request for comment for more details.

TikTok made its public decision days after India’s media reported that the country plans to permanently ban 59 blocked Chinese apps last June, including TikTok, Tencent’s WeChat and Alibaba’s UC browser. Indian regulators at the time claimed the applications posed a “threat to sovereignty and integrity”.
The ban was a big blow to TikTok, yes an estimated 120 million users in India.

And even though TikTok said yes this week “worked hard to comply” with the country’s authorities, it seems that these efforts had little effect.

A source from the Ministry of Electronics and Computers He told CNN Business on Wednesday that the government decided this week that the ban should be permanent because it was not satisfied with how Chinese companies had addressed concerns about data collection and security.

“We continually strive to ensure that our applications comply with local laws and regulations and do our best to resolve any questions they may have,” the TikTok spokesman said. “Therefore, it is disappointing that in the next seven months, despite our efforts, we have not been given a clear direction on how and when our applications could be reinstated.”

The spokesman added that the company hopes that someday the app will be allowed to return.

High intensity voltages

Tensions between China and India have been rising since last summer, when a bloody clash along a disputed border in the Himalayas left at least 20 Indian soldiers dead.
India has banned dozens of Chinese apps since then and reportedly prevented Huawei from participating in India’s 5G telecommunications network. And many Indians have called for a boycott of Chinese products and services.
Business impact may be limited for some companies, including Alibaba (BABA), which was already reduced in India after the ban.

Last August, CEO Daniel Zhang announced that the company had “decided to stop operations” of UC Browser, a web browsing app and other initiatives in India.

“We don’t expect it to have a material impact on the group’s overall financial performance,” he told analysts during a profit call, citing a “thorough review of the business”.

A spokesman for the UC browser declined to comment.

Chinese technology companies are betting heavily on India.  They are now being closed
Tencent (TCEHY) he has not yet outlined his plans.

“Tencent complies with all applicable orders and regulations and continues to adhere to the laws applicable to the jurisdictions in which we operate. We look forward to continuing to focus on our core markets and provide valuable services to our users,” a spokesman said. statement to CNN Business. The company declined to provide further details.

Ji Rong, a spokesman for the Chinese embassy in India, on Wednesday reiterated China’s opposition to the ban.

“Since last year, the Indian side has repeatedly used national security as an excuse to ban some mobile apps with a Chinese background. [are] in violation of WTO non-discriminatory principles, ”he said.

Meanwhile, geopolitical tensions between India and China have continued to simmer. On Monday, the Indian Army revealed that there had been a “minor” confrontation between Indian soldiers and China’s People’s Liberation Army.

The incident took place last Wednesday near a disputed border in the Himalayas, and “was resolved by local commanders according to established protocols,” the Indian army said in a statement.

– South Vedika, Steven Jiang, Rishi Iyengar and Manveena Suri contributed to this report.

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