TikTok parent firm ByteDance has started large-scale layoffs in the country after the government permanently banned the China-based short-video service along with 58 other apps following responses from the companies on issues such as compliance and privacy.

Speculation is rife about TikTok exiting the country, but sources insist the company will stay. However, the permanent ban by India and decision to downsize isn't helping the company.

China said the government’s decision to keep the ban on the 59 Chinese apps was a violation of the World Trade Organization’s fair rules of business and would hurt Chinese firms.

“We urge the Indian side to immediately correct its discriminatory measures and avoid causing further damage to bilateral cooperation,” Chinese embassy spokesperson Ji Rong said in a statement.

These “apps collect and share data in a surreptitious manner and compromise personal data and information of users that can have a severe threat to the security of the state,” India’s ministry of electronics and information and technology had said.

“We have worked steadfastly to comply with the Government of India order issued on June 29, 2020. We continually strive to make our apps comply with local laws and regulations and do our best to address any concerns they have,” TikTok said.