Will TikTok lay off 7,000 of its US employees this Friday?

This Friday, the US Supreme Court is set to hear arguments from TikTok and ByteDance regarding the law signed by Biden that could ban the app starting January 19 unless ByteDance divests its ownership. Naturally, TikTok needs the Supreme Court to pause the ban during the legal proceedings, though the court has not yet acted on the request.

If the law is implemented, new users will be unable to download TikTok from app stores, and existing users will not receive updates or maintenance, leading to eventual usability issues, reads a scenario by Reuters for what happens if the app is banned.

For TikTok's 170 million US users, the ban presents significant challenges. While existing downloads will initially remain functional, the lack of updates could render the app obsolete over time… so don't act surprised.

Some users have turned to virtual private networks (VPNs) to try to bypass potential restrictions, while content creators and businesses reliant on TikTok for growth face uncertainty. Nadya Okamoto, a creator with over 4 million followers, expressed concerns about increased marketing costs if the app is banned, calling the situation stressful.

The ban also casts doubt on the future of TikTok’s 7,000 US-based employees, with fears of layoffs spreading among staff. Despite this, TikTok has reportedly continued hiring, leading to confusion among prospective employees navigating the uncertainty.

Advertisers, too, are weighing their options. TikTok’s ad revenue is projected to reach $12.3 billion in 2024, and its unique user engagement makes it a valuable platform, to put it mildly.

Meanwhile, discussions of potential buyers have surfaced, including billionaire Frank McCourt, who has reportedly secured $20 billion in verbal commitments to bid for TikTok if forced to divest. McCourt envisions a future for TikTok centered on open-source technology and innovative revenue models, though ByteDance has consistently stated it cannot sell the app.