TikTok’s e-commerce division may be facing significant changes.
On Tuesday, employees at TikTok Shop U.S. were informed via internal memo that they should work from home on Wednesday. The note hinted at upcoming “difficult decisions,” with updates on “organizational and personnel changes” to be delivered by email, followed by contact from HR—strongly suggesting a new round of layoffs or restructuring.
The message, first reported by Bloomberg, comes as TikTok continues to face mounting pressure in the U.S. and abroad. Though the TikTok Shop marketplace has seen explosive growth since its U.S. launch in 2023—including hitting $100 million in sales on Black Friday alone—it has also dealt with increased scrutiny, performance challenges, and geopolitical hurdles.
“TikTok Shop is the fastest-growing sales channel we’ve ever had at MaryRuth’s. It took off faster than Amazon, faster than retail, faster than anything we’ve seen,” said Jay Hunter, Chief Revenue Officer at supplement brand MaryRuth’s, in a recent LinkedIn post. “It’s messy. It’s unpredictable. But the upside is real.”
Despite that upside, recent sales declines have been reported. According to Business Insider, TikTok Shop’s performance has slipped month over month due in part to U.S. tariffs impacting China-based sellers. Meanwhile, ByteDance, TikTok’s China-based parent company, continues to navigate the threat of a possible U.S. ban tied to national security concerns.
Tuesday’s memo reportedly came from Mu Qing, an executive who has taken on more control of TikTok’s e-commerce unit as part of recent organizational changes. The company laid off members of its U.S. e-commerce governance and experience team in April, citing performance issues.
No official word has been given by TikTok on the scale or scope of the upcoming changes.
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