TikTok is shuttering its Nashville office in early October and laying off 250 staffers.
Last week, the company told impacted workers they’d remain on payroll for the next couple of months before the office officially closed. After that, employees are being offered one month of severance pay plus an additional month of pay for each year they’ve worked at the company, three impacted staffers said.
TikTok’s severance package falls within the range of what other media and tech firms have offered in recent layoff rounds:
In February, The Washington Post offered laid-off workers a month of base pay, plus two weeks of pay for each year they’d worked at the company if they’d been there for more than three years.In April, Disney offered non-manager staff one month of severance if they’d been there fewer than five years. Non-managers who had been there over five years were offered a week of pay for each year, up to 52 weeks.In May, Meta offered four months of base severance pay, plus two additional weeks of pay for every year of employment.
TikTok emailed Nashville workers to tell them they were being laid off on the morning of August 5. It then shared more details during an office-wide video call, in which the chat was disabled, and employees couldn’t ask questions. The company directed staff to send individual questions directly to HR, a spokesperson said.
Some Nashville employees with early shifts were already at the office before the layoff was announced, and were escorted out of the building.
TikTok’s decision to shut down its Nashville office caught some employees off guard, while others told Business Insider they weren’t too surprised after noticing a slowdown in new hiring or backfilling of office roles over the past year.
“Even without anyone explicitly telling us Nashville was at risk, people naturally started wondering whether certain teams or locations might eventually be consolidated,” one impacted staffer said.
A TikTok spokesperson said the office is being closed “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,” they said.
Many of TikTok’s Nashville employees worked on its trust and safety team, which handles tasks like enforcing community and safety guidelines and content moderation. These staffers work separately from ByteDance via a joint venture the company set up with a mix of investors, including Oracle, called TikTok USDS JV.
TikTok has trust and safety workers in other US offices, including Seattle, California, and New York, as well as a large cohort based in Scottsdale. It also works with third-party contractors for tasks like content moderation.
Ahead of the Nashville layoffs, TikTok was shifting more of its content moderation work to third-party contractors, one impacted staffer said. It was also encouraging its trust and safety workers to use AI to streamline their work, using internal AI tools such as the AIME chat interface and the coding product TRAE, which are available to most company employees, two laid-off workers said.
TikTok’s global team previously made cuts to its content moderation operations, including laying off hundreds of UK workers about a year ago as part of a reorganization and push for automation, The Wall Street Journal reported. The company has also trimmed other divisions in recent years, such as e-commerce and marketing, to meet shifting business needs.
Have a tip? Contact this reporter via email at dwhateley@businessinsider.com or Signal at @danwhateley.94. Use a personal email address, a nonwork WiFi network, and a nonwork device; here’s our guide to sharing information securely.
