TikTok's Ongoing E-commerce Layoffs and What the Company Is Communicating to Employees

On Wednesday, TikTok informed some of its e-commerce staff about the elimination of their positions due to 'organizational and personnel changes,' as per information from two current staff members and an internal email reviewed by Business Insider.

Human Resources is set to assist the impacted individuals with the ensuing steps related to this 'difficult news,' and there is 'no need to visit the office' as they navigate this transition, according to the email.

The job reductions are affecting employees across different sectors of TikTok and ByteDance’s international e-commerce section, including those in content moderation, product development, and those collaborating with creators and sellers, according to the employees. Business Insider was not able to immediately ascertain the number of affected roles.

While some workers received notices of job termination, others were informed that they would retain their roles amidst a reorganization.

In a statement to Business Insider, a TikTok representative mentioned, 'As the TikTok Shop business progresses, we routinely evaluate our operations to guarantee long-term success. Following thorough consideration, we've chosen to modify parts of our team to better suit strategic priorities.'

Strategic Adjustments in E-commerce

Internally, the company communicated that it has utilized the past month to assess the best methods to 'support our evolving global e-commerce business in alignment with our purpose and shifting objectives,' and is 'redistributing resources and decreasing complexity to pursue improved collaboration and greater efficiency.'

These adjustments are part of a continuous wave of employee reductions impacting those involved with the Shop throughout this year.

Influence of Leadership and Layoff Trends

In April, TikTok and its parent company ByteDance initiated layoffs affecting numerous teams within the e-commerce governance and experience group, tasked with ensuring marketplace safety for sellers, creators, and users. In May, additional rounds of layoffs impacted U.S. operations and key global account workers, along with staff in Indonesia, as reported by Bloomberg.

The U.S. e-commerce division of TikTok became a primary target for these reductions after division leader Bob Kang informed employees during a February all-employees meeting that the team did not meet certain 2024 performance targets. The performance in 2025 has varied, with sales occasionally declining due to new tariffs imposed on China. According to prior reporting by Business Insider, U.S. weekly order volume decreased by mid-May compared to mid-April. In June, the company noted in a blog post that platform sales jumped by 120% in the first half of June compared to the prior year.

Further Staffing Changes

Besides the layoffs, TikTok also reduced headcount during performance reviews conducted in March, offering some employees the choice of accepting a performance improvement plan or departing the company under a mutual separation deal. With the departure of certain U.S. team members, managers from China and Singapore, who have extensive knowledge of TikTok's sister app, Douyin, have taken more control over the operations, previous employee reports to Business Insider indicated.

Implications of Political Factors

The latest round of layoffs coincides with TikTok's ongoing negotiations with the Trump administration regarding a 2024 regulation necessitating ByteDance to separate operations from TikTok within the U.S.

In a recent interview with Fox News, Trump mentioned that his administration seeks to approve a bid for TikTok's U.S. operations from a consortium of 'extremely wealthy individuals.' Any transaction involving ByteDance regarding a TikTok sale would also require the sanction of the Chinese government.