TikTok's Reassurance: A Calm Before the Storm?

As the January 19 deadline for a potential U.S. ban on TikTok looms, the popular social media platform has sought to reassure its American employees about their job security and pay. In an internal memo obtained by The Verge, TikTok's leadership team emphasized that employee wellbeing is a top priority, and that their employment, pay, and benefits are secure, regardless of the outcome of the Supreme Court's decision. The memo also noted that TikTok's offices will remain open, even if the situation is not resolved by the January 19 deadline.



TikTok's leadership team has been laser-focused on planning for various scenarios ahead of the Supreme Court's decision, which is expected as soon as January 15th. While the memo does not provide specific details about the strategic plans in place for various scenarios post-Jan. 19, it is clear that TikTok is taking steps to ensure the stability of its workforce and operations, even in the face of uncertainty about the app's future in the U.S.

However, the potential ban of TikTok in the U.S. could have significant implications for the broader job market and economy. TikTok employs around 7,000 people in the U.S., and a ban or sale would likely lead to job losses or uncertainty for these employees. In 2020, a TikTok employee successfully raised over $30,000 to fund a possible court order demanding TikTok still be allowed to pay its employees if the ban was implemented.

TikTok's potential ban could also have a ripple effect on small businesses and job creation. The social media platform has become an essential marketing tool for many small businesses, and a ban could deprive them of a platform they rely on to grow and create jobs. According to TikTok, the legislation could deprive 5 million small businesses of a platform they rely on to grow and create jobs.



A ban on TikTok would also force businesses to reallocate resources and potentially retrain employees to work on other marketing channels. Some businesses might decide to scrap teams or close their doors, leading to job losses. Matt Navarra, a social media industry analyst, noted that "a large number of users and eyeballs and attention would be gifted to rival platforms" like Instagram and YouTube, which could open up alternative career paths or sources of business income. However, there is no guarantee of successful transition, and others might decide to scrap teams or face the sad reality of closing their doors.

As the Supreme Court prepares to hear arguments in the case on Friday, January 15th, the fate of TikTok in the U.S. hangs in the balance. The justices will have to decide what level of review to apply to the law, with strict scrutiny almost always failing. The Biden administration, defending the law, contends that "no one can seriously dispute that (China's) control of TikTok through ByteDance represents a grave threat to national security." However, TikTok argues that limits on speech should not be sustained when they stem from fears that are predicated on future risks.

In conclusion, TikTok's internal memo seeks to reassure U.S. employees about their job security and pay ahead of the January 19 ban deadline. However, the potential ban of TikTok in the U.S. could have significant implications for the broader job market and economy, including job losses, uncertainty for employees, reduced marketing opportunities for businesses, shifts in marketing strategies, and potential economic losses. As the Supreme Court prepares to hear arguments in the case, the fate of TikTok in the U.S. remains uncertain.