TikTok Shop employees in the US are bracing for layoffs after the company told staffers to work from home Wednesday ahead of “organizational and personnel changes,” per a memo viewed by Business Insider.
The moves are expected to impact employees who work in US operations and global key accounts, a team that works with large brands.
The company said it was making the changes after “careful analysis of how to create more efficient operating models for the team’s long-term growth,” according to the memo, which was sent by e-commerce executive Mu Qing.
Employees began receiving emails that their roles were affected on Wednesday morning.
BI was not able to determine the scale of employees who would be affected by the changes. TikTok did not immediately respond to a request for comment. Bloomberg earlier reported on the memo.
TikTok’s US e-commerce business has been off to a rocky start this year, as sales have slumped amid global tariffs and broader economic uncertainty. Employees previously told BI that daily US sales from foreign sellers, many based in China where tariffs skyrocketed in April, contributed to a broader sales drop-off on the platform starting in late March.
TikTok’s coming personnel changes follow a round of job cuts in April when it restructured its e-commerce governance and experience team, BI previously reported.
TikTok Shop’s growth in the US is a big priority at ByteDance, which sees hundreds of billions in annual sales on its Chinese sister app, Douyin. But even before its more recent sales slump, the US e-commerce business failed to meet many of its performance goals in 2024, company leaders told staffers during a February all-hands.
Over the past year and a half, TikTok has shaken up its leadership structure across the company, giving greater oversight to some Chinese and Singaporean leaders in departments including Shop.
TikTok’s US future is up in the air due to a divest-or-ban law that requires ByteDance to give up majority ownership of its US app.
TikTok has until June 19 to find a new owner, though President Donald Trump may extend that deadline. During a recent press appearance, he said he had a warm spot in his heart for TikTok.
Read the full memo sent to e-commerce staffers telling them to stay home ahead of personnel changes:
Over the past month, I have taken the opportunity to learn and evaluate how best to support US business in meeting the opportunities and challenges ahead of us. We have undergone careful analysis of how to create more efficient operating models for the team’s long-term growth and, as a result, will be communicating organizational and personnel changes to the e-Commerce US operations, US operations center, and global key accounts teams beginning early on Wednesday, May 21 (PT). Our goal is to communicate with employees swiftly and with as much clarity as possible. All updates will be made via your company email, followed by HRBP outreach. To best facilitate these conversations, it is recommended that you work remotely on Wednesday, May 21. We appreciate everyone’s patience and understanding as we navigate these difficult discussions. We are committed to supporting our teams throughout this transition with as much compassion and support as possible.
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