TikTok plans layoffs in e-commerce division amid US market challenges
What's the story
TikTok and its parent company ByteDance are reportedly preparing for layoffs, particularly in the e-commerce division, TikTok Shop. The decision comes as part of an internal restructuring process and the ongoing difficulties in the US market. A memo sent by the company said these "organizational and personnel changes" were coming after a "careful analysis of how to create more efficient operating models for the team's long-term growth."
Market challenges
TikTok began replacing US-based staff with leaders from China
Last month, Bloomberg reported that TikTok began replacing US-based staff with leaders from China. The move was part of an effort to replicate the success of TikTok Shop in Asia within the US market. This came after its US e-commerce business failed to meet a target of $17.5 billion in transaction volume. The transition has reportedly led to over 100 employees either being fired or leaving due to confusion among leaders, making the work environment increasingly difficult.
Regulatory pressures
President Trump delays ban on TikTok for third time
The news of potential layoffs comes amid continued uncertainty over TikTok's future in the US. President Donald Trump has delayed a ban on the app for the third time this year. He signed an executive order giving his administration 90 more days to negotiate a deal that would force the social media platform into American hands. Trump recently revealed that he has found a "wealthy" buyer for TikTok with more details to be shared in about two weeks.