TikTok is firing workers in India as the ban becomes permanent

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The popular short video app announced on Wednesday that it will drop workers in India after it “had not received clear instructions on how and when our apps might be restored.”

“It is very regrettable that, after more than half a year supporting our 2000+ employees in India, we have no choice but to reduce our workforce,” a TikTok spokesperson said in a statement.

TikTok, which is owned by Beijing-based ByteDance, did not say how many workers would be affected and did not immediately respond to a request for comment for more details.

TikTok made its decision public days after Indian media reported that the country plans to permanently ban 59 Chinese apps blocked last June, including TikTok, Tencent’s WeChat and Alibaba’s UC Browser. Indian regulators at the time claimed the apps were “a threat to sovereignty and integrity.”
The ban was a huge blow to TikTok, who had an estimated 120 million users in India.

And although this week TikTok said it is “worked steadfastly to comply with” the authorities in the country, such efforts seem to have had little effect.

A source at the Ministry of Electronics and IT CNN told Business on Wednesday that this week the government decided to make the ban permanent because it was unhappy with the way the Chinese companies had addressed their concerns about data collection and security.

“We are constantly striving to make our apps comply with local laws and regulations, and we are doing our best to address any concerns,” said the TikTok spokesperson. “It is disappointing, therefore, that in the next seven months, despite our best efforts, we have not been given a clear direction on how and when to restore our apps.”

The spokesperson added that the company hopes the app will one day return.

Rising tensions

Tensions between China and India have intensified since last summer, when a bloody clash along a disputed Himalayan border killed at least 20 Indian soldiers.
India has since banned dozens of Chinese apps and reportedly prevented Huawei from participating in India’s 5G telecommunications network. And many Indians have called for a boycott of Chinese goods and services.
The business impact may be limited for some companies, including Alibaba (BABA), which has already been scaled back in India after the ban.

Last August, CEO Daniel Zhang announced that the company had “decided to shut down” UC Browser, a web browser app and other initiatives in India.

“We do not expect it to have a material impact on the overall financial performance of the group,” he told analysts during an earnings call, citing a “comprehensive assessment of the company.”

A UC Browser spokesperson declined to comment.

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Tencent (TCEHY) has not set out his plans yet.

“Tencent complies with all applicable orders and regulations and continues to abide by applicable laws in the jurisdictions in which we operate. We look forward to continuing to focus on our core markets and providing valuable services to our users,” said a spokesperson in a statement to CNN Business. The company declined to provide further details.

Ji Rong, a spokesman for the Chinese embassy in India, reiterated China’s opposition to the ban on Wednesday.

Since last year, the Indian side has repeatedly used national security as an excuse to ban certain mobile apps with a Chinese background. [are] contrary to the non-discriminatory principles of the WTO, ”she said.

Geopolitical tensions between India and China, meanwhile, have continued to simmer. On Monday, the Indian army announced that there had been a ‘small’ confrontation between Indian soldiers and the Chinese People’s Liberation Army.

The incident took place on Wednesday near a disputed border high in the Himalayas and “was resolved by local commanders according to established protocols,” the Indian military said in a statement.

– Vedika Sud, Steven Jiang, Rishi Iyengar and Manveena Suri contributed to this report.

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