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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