Key Takeaways
- TikTok is reportedly downsizing its U.S. e-commerce team.
- The move comes after ByteDance’s leadership expressed dissatisfaction with U.S. e-commerce performance.
- In January, TikTok told U.S. employees that the looming ban wouldn’t threaten their jobs.
TikTok is laying off staff from its U.S. e-commerce team, which has been under pressure for failing to meet growth targets.
The cutback comes as TikTok’s future in the U.S. remains in the balance. However, the firm has previously sought to reassure American workers that their jobs are secure even if the platform is banned.
TikTok Downsizes U.S. Team
According to employees cited by Business Insider, the latest layoffs will affect the “governance and experience” team of TikTok’s e-commerce unit, which handles TikTok Shop safety.
The publication previously reported that department employees who received low-performance scores were offered a choice between accepting a severance package and submitting a performance improvement plan.
Meanwhile, ByteDance’s China-based leadership recently singled out TikTok’s U.S. e-commerce team for underperforming.
American E-Commerce Underwhelms
In an all-hands meeting in February, global e-commerce director Kang Zeyu reportedly praised TikTok Shop’s strong growth in Southeast Asia and the U.K.
“But the United States did not do well in 2024, and many goals were not achieved in the first three quarters,” he lamented.
U.S. Employment and the TikTok Ban
With TikTok’s American e-commerce strategy falling behind other geographies, ongoing uncertainty over the platform’s future in the U.S. further complicates the matter for local staff.
Prior to the initial deadline for ByteDance to sell TikTok or face a U.S. ban, Global Head of Human Resources Nicky Raghavan downplayed the potential threat to jobs.
“Your employment, pay and benefits are secure, and our offices will remain open, even if this situation hasn’t been resolved before the Jan. 19 deadline,” Raghavan wrote in a message to staff.
Since then, the deadline has been extended twice, with TikTok emerging as a pawn in the escalating U.S.–China trade war.
What all this means for the firm’s American employees isn’t yet clear. But if the app is ultimately shuttered in the U.S., Raghavan may not be able to keep her promise for long.
James Morales is CCN’s blockchain and crypto policy reporter. He has been working in the news media since 2020, writing about topics such as payments, banking and financial technology. These days, he likes to explore the latest blockchain innovations and the evolving landscape of global crypto regulation.
With an educational background in social anthropology and media studies, James uses his platform as a journalist to explore how new technologies work, why they matter and how they might shape our future.
