The potential ban of TikTok in the U.S. Is predicted to lead to one of the largest mass layoffs in the country’s history.
With over 7,000 employees in the U.S. and a growing network of creators, advertisers, and businesses relying on the platform, a shutdown would have significant ripple effects on employment and the digital economy.
TikTok content creator and the CEO of Canvas Beauty, Stormi Steele, in an interview with CNBC, emphasized the potential consequences of a TikTok ban in the U.S., describing it as a move that could lead to “one of the biggest layoffs in American history”.
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When asked what the shutdown of TikTok meant for the American people, she said,
“To be honest, I feel like what is not considered with the TikTok shutdown is the morale of the American people. I feel like it will be totally against 170 million people’s freedom of speech, and on top of that, it will directly impact their income in a significant way.”
Steele is reported to have sold 1.5 million total units on TikTok and also made $2.08 million in a single live stream on the platform.
TikTok, known for its vibrant community of content creators, has no doubt become a major source of income for millions, including influencers, small businesses, and brands leveraging its vast reach to grow. Steele’s statement underscores the interconnected nature of digital platforms and the modern economy, where social media can make livelihoods.
Notably, the implications of the TikTok ban extend beyond direct TikTok employees, as many content creators and small businesses have built their livelihoods on the app, creating a cascading economic impact. Several analysts argue that this move could disrupt industries dependent on short-form video content and digital advertising, further magnifying the consequences of such a decision.
With reports disclosing that TikTok plans to cease operations in the United States on Sunday, January 19, several American users are reportedly exploring alternative platforms, with Chinese-owned apps like Xiaohongshu (marketed as RedNote in the U.S.) and Lemon8 experiencing a surge in downloads.
While concerns over ByteDance’s potential data-sharing with the Chinese government were central to the ban, the mass migration to RedNote indicates that many American users are not overly worried about data privacy. Instead, their actions signal a demand for the type of innovative and engaging social networking experiences that TikTok pioneered.
Many TikTok creators are rushing to find alternatives where they can continue posting videos while waiting to see what happens with TikTok, which faces a potential ban. Meanwhile, U.S. president-elect, Donald Trump has expressed concerns about the TikTok ban, urging the Supreme Court to delay its implementation while he seeks a political solution.
His incoming national security adviser Mike Waltz disclosed that Trump was looking for ways to “preserve” TikTok regardless of the court’s ruling, saying Americans’ access to the platform and their data would be preserved.