While traders are arguing over who will truly own TikTok Global, TikTok promises to create 25,000 new jobs in the United States.

So the question is: How does TikTok create 25,000 new jobs in the US market?

But experts say that such a high number shows that when TikTok faces unprecedented global challenges, revenue needs to achieve substantial growth.

If TikTok's operating efficiency is close to that of other Internet companies such as Twitter, the company needs to increase its revenue to 19 times its current level in the next few years. Earlier reports stated that TikTok expects to generate approximately $1 billion in revenue by the end of 2020.

Wedbush Securities Technology Analyst Dan Ives (Dan Ives) said that given the U.S. government's high attention to TikTok's data privacy policy, many new U.S. jobs may be in areas such as engineering, content review, and security.

"From a security and infrastructure perspective, they will have to hire thousands of employees to focus on this issue..." Ives said.

TikTok recently announced the establishment of a $1 billion creator fund to pay for the production of videos to popular TikTok influencers. Brian Wieser, global president of advertising company GroupM business intelligence, said that if you count the number of content creators, it will help TikTok create 25,000 jobs.

Because ByteDance will still have the algorithm to run TikTok and will license it to the newly established US company, the new company will no longer need to hire a large team engaged in artificial intelligence research.

In fact, Abishur Prakash, an expert at the Innovative Future Center of the consulting firm, said when talking about the types of employees TikTok might hire, this type of work occupies a large proportion of social media platforms like Facebook. .

Prakash added that Oracle and Wal-Mart can also set up departments within their own companies to provide services for TikTok, which may help increase jobs.

A source familiar with the transaction discussion stated that the 25,000 jobs were measured based on an organization with the same scale as TikTok and the same number of users as TikTok, but did not disclose specific details. The source also said that this number of jobs is actually conservative, and the purpose is to make fewer promises and more fulfillment.

Foxconn, another technology company, promised to bring 13,000 new jobs to Wisconsin in 2017. This agreement to build a new factory in the United States was praised by US President Trump as "the eighth wonder of the world", proving his ability to bring jobs back to the United States.

According to reports, a document submitted to the Wisconsin Department of Economic Development shows that Foxconn employed about 600 people in the area in 2019.

In fact, comparing TikTok's job goal with the income of employees of other Internet companies can better understand this goal.

In 2019, Twitter’s 4,800 employees generated an average of nearly 720,000 US dollars in revenue per person, with total annual revenue of 3.5 billion US dollars. In 2019, Snap's 3,195 employees each generated approximately $537,000 in revenue, and total revenue that year was $1.7 billion.

According to previous reports, ByteDance currently employs more than 1,000 employees in the United States, most of which are located in California, and some work in Texas and other places.

With similar operational efficiencies, TikTok’s newly added 26,000 American employees are expected to generate between 14 billion and 19 billion US dollars in annual revenue.

Prakash said it is not easy for TikTok to achieve such revenue goals. "We are at different stages of TikTok..." he added, "To reach 14 times (revenue), they will take longer and it will be difficult." (Chenchen)

Source: NetEase Technology Report, translated by Google Translate