In response to a fall in advertising expenditure and e-commerce, the social media juggernaut TikTok is lowering its global revenue forecast for this year by at least $2 billion, or 20%.
According to the Financial Times, which cites four sources familiar with the matter, the business reportedly estimates a revenue total closer to $10 billion. Initially, the corporation anticipated a range of $12 billion to $14.5 billion.
According to the story, TikTok Chief Executive Shou Zi Chew disclosed the lowered outlook during a virtual “all-hands” meeting in which employees were criticised for not doing enough to increase sales in advertising and e-commerce, the company’s primary income generators.
Current and former TikTok employees told the Financial Times that the company “overspent” on pay and social events, among other things.
TikTok reportedly offered six-figure pay to staff in “relatively junior roles” to attract them from competing companies.
Bloomberg reported in June, citing eMarketer, that TikTok generated about $4 billion in income in 2021, primarily from advertising, and that revenue is expected to surpass $12 billion this year.
TikTok would beat Twitter and Snap combined at that rate.