TikTok has become the latest tech giant to hand out pink slips, laying off dozens of employees this week to cut costs, according to workers at the fast-growing video app.

Around 60 TikTok employees were let go on Monday, predominantly in the company’s advertising and sales divisions, a spokesperson confirmed—the eliminated roles spanned teams in Los Angeles, New York, Austin, and overseas. TikTok is scheduling a town hall meeting for the remaining staff on Tuesday to address the job cuts.

The move marks a rare moment of contraction for TikTok in the U.S., where the Chinese-owned app has seen meteoric growth. TikTok now counts over 150 million monthly active American users – nearly half the country’s population. Its parent company ByteDance is valued by private investors at a staggering $225 billion, making it the world’s most valuable private firm.

But TikTok finds itself swept up in a massive wave of layoffs crashing through the technology industry. More than 10,000 tech workers have lost their jobs so far in 2024 as companies brace for a funding slowdown and shifting priorities.

Last week saw particularly heavy carnage, with Amazon-owned Twitch cutting nearly 30% of its workforce and Facebook parent Meta firing over 11,000 employees.

For many tech critics, the layoffs represent a market correction after years of undisciplined spending. But they bring real economic pain, especially in cities like Austin where the tech boom has driven up housing costs.

TikTok did not specify whether further job cuts are coming. But with recession fears lingering and generative AI set to guzzle even more tech investment, the layoff tidal wave may still be building across Silicon Valley.