TikTok Lays Off More Employees Working on TikTok Shop US
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TikTok has carried out another round of layoffs within its U.S. TikTok Shop team, marking the third wave of cuts since April. While the company has not disclosed the number of employees impacted, sources suggest the restructuring is part of a broader shift in how TikTok is approaching its e-commerce business in the U.S.
The company launched less than two years ago as one of TikTok’s fastest-growing divisions. The platform allowed creators to earn commissions when viewers purchased products featured in their content, quickly becoming a core driver of TikTok’s social commerce ambitions. Despite rapid growth, the U.S. operation has faced performance challenges, including missed targets and difficulty replicating the success seen in Asian markets.
The layoffs come as part of wider organizational adjustments that have affected roles in areas such as moderation, product management, and creator-seller support. Employees impacted by the restructuring were told they would not need to return to the office and were given access to HR resources to support their transition. These steps reflect a growing emphasis on streamlining operations and realigning global priorities.
In recent months, TikTok’s parent company, ByteDance, has been consolidating oversight of the e-commerce division. Leadership teams based in China and Singapore are increasingly directing strategy across global markets, including the U.S. This move signals a stronger reliance on operational models used by Douyin, TikTok’s Chinese counterpart, rather than continuing to scale the U.S. team independently.
TikTok Shop’s future in the U.S. remains uncertain as the company faces a mix of external pressures. Trade tensions, new laws requiring divestment of U.S. operations, and ongoing legal battles related to user privacy and child safety add layers of complexity. At the same time, heavy investment in U.S. infrastructure—such as recruiting talent from Amazon and building logistics networks—has not consistently delivered the expected returns, forcing the company to rethink its approach.
For creators and sellers who rely on TikTok Shop, these changes highlight the volatility of the platform’s e-commerce strategy. The repeated restructurings and centralization suggest TikTok is shifting from aggressive expansion to a phase of efficiency and cost control. For businesses and influencers, this may bring new uncertainties—but also opportunities for those able to adapt to evolving models of social commerce.
