TikTok employees face layoffs as company announces 'organisational and personnel changes': Here's the unit that may be affected
Employees of
TikTok
and its parent company,
ByteDance
, may be facing potential layoffs after the company recently informed the staff of upcoming 'organisational and personnel changes.' According to a memo seen by Business Insider (BI), these changes are expected to affect workers in TikTok's global e-commerce business, TikTok Shop.
TikTok Shop
has already experienced several rounds of layoffs this year. The current announcement indicates further personnel adjustments within this unit.
What TikTok's internal memo said about the layoffs
In the internal memo seen by BI, the company wrote:
'Over the past month, we have assessed how we can best support our evolving Global E-commerce business in alignment with our mission and evolving goals in the market.'
The company added that these updates stem from a
"careful analysis of how to create more efficient operating models for the team's long-term growth."
TikTok's US e-commerce team has faced growing challenges in 2024 and 2025, drawing increased attention from parent company ByteDance. In a February all-hands meeting, leadership acknowledged the team had not met its performance targets in 2024.
Compounding issues in 2025, new tariffs imposed by the Trump administration on Chinese goods have disrupted operations, as many of TikTok's global sellers are based in China. In US, the weekly order volume reportedly declined in mid-May compared to April, following the tariff hike.
In response, TikTok has reduced staff through layoffs and performance reviews. Some employees were asked to choose between performance-improvement plans or severance packages. As part of these changes, experienced leaders from China and Singapore—primarily from
Douyin
, TikTok's Chinese sister app—have taken over roles previously held by US-based staff.
These shifts come amid broader uncertainty surrounding TikTok's future in the US. The company is still negotiating with the Trump administration over a 2024 law requiring ByteDance to sell its US assets or risk a potential ban.
Enforcement of the law has been delayed through executive orders, but the uncertainty is affecting staff morale. One employee said their team was directly impacted by the latest changes but asked to remain anonymous.
"I think for many of us, we just want clarity. These eternal extensions make no sense for anyone who works here. How can we plan our jobs and lives if every 90 days we might get banned or sold?'
the employee said to BI.
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