Biggest Layoff in U.S. History: TikTok Ban Cuts Jobs for Over 7 Million Creators
The recent ban on TikTok in the United States has led to significant economic repercussions, particularly among content creators and small businesses that relied on the platform for income and outreach.
According to TikTok’s own estimates as reported by CNN, approximately 7 million U.S. small businesses utilized the app, collectively standing to lose around $1 billion in revenue due to the ban.
Additionally, around 2 million creators who depended on TikTok for their livelihoods are now facing substantial income losses.
This mass displacement has been described by industry experts as one of the largest layoffs in American history.
The ban, which took effect on January 19, 2025, was enforced after the Supreme Court upheld a congressional law requiring TikTok’s Chinese parent company, ByteDance, to divest its U.S. operations by the specified date.
According to Wired, failure to secure a sale led to the app’s removal from major platforms, including Apple and Google app stores, and the shutdown of servers hosting U.S. TikTok data.
The ban has not only affected individual creators but also small businesses that leveraged TikTok for marketing and customer engagement.
Many creators have expressed concerns about the lack of comparable alternatives, noting that other platforms do not offer the same financial opportunities as TikTok.
As the situation unfolds, creators and small businesses are exploring alternative platforms to rebuild their online presence, while the broader implications of the ban continue to impact the digital economy.
