TikTok is seeking to negotiate with Canadian officials as the company prepares to wind down its operations in the country following a government order citing national security risks.
In November, Canada’s Innovation, Science and Industry Minister, François-Philippe Champagne, said the government had ordered TikTok Technology Canada to “wind up” its operations over “specific national security risks” that had been identified during a year-long review of TikTok’s Canadian operations.
“The government is not blocking Canadians’ access to the TikTok application or their ability to create content. The decision to use a social media application or platform is a personal choice,” Champagne said at the time.
Most recently, Bloomberg reported Monday (July 14), citing an interview with Steve de Eyre, director of TikTok’s government affairs for Canada, that ByteDance-owned TikTok has already started cutting spending on cultural programs and sponsorships this month after receiving the order in November.
“We are still looking to get [a deal] to the table… Time is running out.”
Steve De Eyre, TikTok
De Eyre told the newswire: “We are still looking to get [a deal] to the table… Time is running out.”
TikTok Chief Executive Shou Zi Chew on July 2 wrote to Industry Minister Melanie Joly, requesting an urgent face-to-face meeting within the next two weeks. The letter, reviewed by Bloomberg, warned that without government intervention, TikTok would be forced to terminate its entire Canadian workforce.
The letter obtained by Bloomberg read: ““The windup process is rapidly approaching a critical juncture where, unless you intervene, TikTok will be forced to fire all of its Canadian employees” as well as halting investment and support for creators.
De Eyre confirmed the letter’s contents but said TikTok has not received an official response from the Industry Ministry, according to the news outlet.
“We’ve had people who have unfortunately left for other opportunities because of this order being out there, and we haven’t been able to rehire for those roles because of the order.”
Steve De Eyre, TikTok
The company, which has challenged the shutdown order in court, employ about 350 people across its Toronto and Vancouver offices, Bloomberg said. The company reported paying C$340 million (USD$248 million) in Canadian taxes between 2019 and 2024. It has 14 million users in Canada, the report added.
De Eyre told Bloomberg: “We’ve had people who have unfortunately left for other opportunities because of this order being out there, and we haven’t been able to rehire for those roles because of the order.”
TikTok’s Canadian woes reflect global tensions over TikTok’s Chinese ownership and data security practices. In the UK, TikTok hired a British firm to audit its data controls and protections as part of efforts to address regulatory concerns.
In the US, TikTok’s presence remains in limbo as US President Donald Trump granted the company another 90-day extension to find a buyer or risk being shut down in the country. Following the latest reprieve, TikTok has until September 17 to look for a new owner.
About two weeks ago, Trump said he has secured a buyer for TikTok’s US business, but declined to identify the group of purchasers.
Bloomberg reported recently, citing a person familiar with the discussions, that the buyers cited by Trump are a group of investors who were previously in talks with ByteDance, including Oracle, Blackstone and venture capital firm Andreessen Horowitz.
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