TikTok is implementing layoffs within its US e-commerce division, affecting staff in US operations, the operations center, and global key accounts. This follows a memo from e-commerce executive Mu Qing, citing the need for more efficient operating models for long-term growth.
Employees began receiving layoff notifications on Wednesday, May 21st. Some received packages including two months of administrative leave and additional severance based on tenure. The exact number of affected employees is unknown.
The layoffs are attributed to the struggling performance of TikTok Shop in the US. Sales have slumped amid global tariffs and economic uncertainty, particularly impacting sales from foreign sellers since late March. This follows previous job cuts in April during a restructuring of the e-commerce team.
Despite ByteDance's significant success with its Chinese app, Douyin, TikTok Shop's US performance has fallen short of expectations, even before the recent sales decline. This coincides with leadership changes over the past year and a half, granting more oversight to Chinese and Singaporean leaders.
The future of TikTok's US operations is uncertain due to a pending divest-or-ban law. ByteDance has until June 19th to find a new owner, although an extension is possible.