TikTok owner ByteDance cuts investment team

In reaction to regulatory crackdowns in China, TikTok owner ByteDance is downsizing its investment team and dissolving a sub-group focused on financial returns, according to three persons familiar with the situation.

ByteDance has split its external investment arm into financial and strategic wings, the latter of which was tasked with backing enterprises with which it could discover synergies.

ByteDance leadership have informed employees on the financial investments team that the team would be dismantled, and they have been encouraged to explore for positions elsewhere, both inside and internationally, two people told Reuters.

After a review earlier this month revealed investments with “poor synergy,” ByteDance announced in a statement that it was disbanding its group-level strategic investment team and relocating staff to various business areas.

It did not react to a Reuters request for comment on the financial investments team’s dissolution.