In a shocking update, TikTok is reportedly shutting down its Nashville office and laying off everyone in it, 250 people in all, as per The New York Times.
The US joint venture that included several members of TikTok’s content-moderation team.
Zanna Crowley, a spokesperson for the TikTok USDS Joint Venture, confirmed the news, stating that the closure was to “streamline our operations and better align our teams for long-term growth.”
“We remain fully committed to providing secure, safe and positive experiences for the 200 million Americans that create, discover and connect with what they love on TikTok,” the spokesperson added.
The cuts come as social media companies depend more on AI to monitor and minimise violent or explicit content on their platforms.
Notably, the Nashville office, which TikTok leased in 2024, will close on October 5.
AI speculation continues
Although TikTok has not associated the layoffs to AI, industry observers note that the company has previously reduced content moderation staff while expanding automated moderation tools.
Progression in AI has made it possible to detect and flag large amounts of harmful content, reducing the need for human reviewers in some cases.
The layoffs also reflect a wider trend across the technology industry, where companies are increasingly investing in AI while minimising workforce costs.
Restructuring following US ownership changes
The job cuts come months after ByteDance reorganised TikTok's US business to adhere with US legislation requiring divestment.
The new US venture is majority-owned by investors including Oracle, Silver Lake, and MGX, while ByteDance retains a 19.9% stake and continues licensing TikTok's recommendation algorithm.
