Spending

TikTok CEO chastised employees for declining sales while spending money on lavish salaries and parties

According to reports, TikTok has cut its projected global ad revenue for 2022 by $2 billion. The CEO of the ByteDance-owned app, Shou Zi Chew briefed a small group of staff. He said the company’s ad revenue expectations had dropped from $12 billion to $10 billion due to lower sales.

According to people who spoke to a news panel, TikTok CEO Shou Zi Chew criticized employees for their poor performance. Even as the company burned through cash on inflated salaries and flying teams across countries for expensive parties, driving estimates down.

Chew slammed staffers during a virtual show of hands meeting in late September. He chastised them for falling sales in e-commerce and advertising, TikTok’s two main sources of revenue.

But according to reports, TikTok wasted money on expensive parties. As the $2.9 million in-house event called “Evolve” took place in Spain.

Additionally, the company is said to have flown entire teams around the world for these events. For example, US sales staff traveled alone to New Orleans in the second half of 2022. At the same time, European workers partied in Barcelona. Meanwhile, the Latin American team traveled to Sao Paulo.

The fact that TikTok is spending money on expensive compensations may also be the cause of its lower revenue targets. According to the four sources who spoke to a news panel, TikTok is driving employees away from competitors by paying colossal compensation. Some entry-level pros are now earning six figures as a result.

TikTok, on the other hand, launches the application of TikTok

TikTok’s in-app purchase feature is now starting to roll out in the US market. As first reported by Semafor, the company began testing its TikTok Shop feature this week, which allows users to make purchases directly from the TikTok app.

Although TikTok has long focused on e-commerce. The United States got off to a slower start than other continents like Asia. After a relatively rocky start earlier this year, the company is gearing up to introduce live shopping features in the US. The company has already experimented with a Shopify shopping tab.

Although TikTok spokesperson Laura Perez confirmed that the new feature is being tested in the United States. She gave no further information. Before that, it was only available in the UK, Indonesia, and other Southeast Asian countries. Semafor says TikTok is distributing invitations to U.S. businesses to participate in the new shopping program, with access to overseas retailers thereafter.

To provide the feature to consumers for the holiday season, it also considered doing live shopping in the United States. Additionally, the platform is recruiting for positions at US-based fulfillment centers that would handle customer returns and warehousing.