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 META posted declining revenues, while Alphabet Inc GOOG GOOGL YouTube and Snap Inc 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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