TikTok to Lay Off E-Commerce Staff Amid U.S. Uncertainty and Internal Restructuring

TikTok and parent corporation ByteDance are poised to cut jobs in their e-commerce units as part of an internal restructuring of TikTok Shop, which has been facing difficulties in the U.S. market. 

As per a company memo obtained by Business Insider, the cuts are coming after a careful review of how to establish more efficient operating models for the long-term growth of the team. The memo highlighted that the team will soon be undergoing organisational and personnel changes, signifying a strategic shift to create efficiencies.

U.S. Market Headwinds

The U.S. portion of TikTok Shop has underperformed, missing its target transaction volume of $17.5 billion for 2024. In addition, rising U.S. tariffs on Chinese goods suppressed the volume of orders in the mid-2025timeframe. Under pressure and facing uncertainty, TikTok has already seen the exit of over 100 employees, with a leadership shake-up and Chinese and Singaporean managers replacing U.S.-based employees.

Regulatory Cloud Over U.S. Operations

Adding to TikTok’s difficulties is a climate of regulatory uncertainty. A law in the U.S. in 2024 directs ByteDance to divest TikTok assets in the U.S. or face regulatory shutdown. While former President Trump granted three reprieves over 90 days, the risk of a deadline is always present, and referrals have now pushed it to mid-September 2025. Trump also suggested potential new ownership, mentioning “very rich” buyers in the pipeline, although neither are specified.

TikTok Shop employees are now preparing for layoffs and bigger reorganisations as ByteDance restructures its U.S. business despite the challenges of operational inefficiencies and geopolitical upheavals.

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