TikTok Is Laying Off Some U.S.-Based Employees This Week. Here's What We Know. TikTok did not disclose the number of employees affected by the layoffs.
By Sherin Shibu Edited by Melissa Malamut
Key Takeaways
- TikTok laid off some U.S. employees working in its e-commerce unit, TikTok Shop, on Wednesday.
- The two divisions impacted were TikTok Shop’s U.S. operations and global key accounts teams.
- A leaked memo instructed staff to work remotely on Wednesday.
TikTok's e-commerce unit, TikTok Shop, is facing layoffs in the U.S.
TikTok Shop head Mu Qing circulated an internal email to U.S. staff late Tuesday, telling them to work from home on Wednesday because some would receive emails indicating their roles had been cut. In the memo, which was viewed by Bloomberg, Mu advised staff to expect "operational and personnel changes" to TikTok's U.S. operations and global key accounts divisions "beginning early on Wednesday."
Related: Microsoft's Mass Layoffs Affected at Least 800 in Software Engineering, According to New Documents
The global key accounts team works closely with large brands, while operations supports merchants, partners, and creators on TikTok.
Mu wrote that TikTok was laying off workers to "create more efficient operating models for the team's long-term growth," and framed the job cuts as "difficult discussions," per the memo.
According to Business Insider, employees started receiving emails informing them that they were impacted by layoffs beginning Wednesday morning.
It is unclear how many employees were affected by the layoffs. Mu stated in the memo that TikTok's goal was to quickly tell impacted employees they were let go.
Related: Google Layoffs Affect Hundreds in Division Working on Chrome Browser, Pixel Phones
Last month, TikTok Shop let go of some U.S. employees as it restructured its governance and experience team.
TikTok officially introduced Shop to the U.S. in September 2023. The shopping marketplace is a tab on the TikTok video app and features items for sale from third-party sellers. It keeps shoppers within TikTok to complete purchases and uses its engaging algorithm to suggest products customers might be interested in.
In 2024, TikTok Shop attracted over 47 million U.S. shoppers, with Americans spending $32 million per day shopping on the social media app, according to Capital One research.
This year, TikTok Shop sales have fallen due to tariffs, four TikTok Shop staffers told Business Insider. Tariffs rose as high as 145% on Chinese goods in mid-April. Earlier this month, the U.S. temporarily lowered tariffs on Chinese goods to 30% while China reduced its levies on U.S. imports from 125% to 10%. BI's sources disclosed that in early May, TikTok Shop's daily U.S. sales from foreign sellers were down by close to 25% month-over-month due to tariffs.
Related: 'More Than Marketing Tools': Some Business Owners Are Worried About the Possible TikTok Ban
TikTok has 7,000 U.S. employees, with over 1,000 employees located near Seattle. The company has other offices in New York, California, and Texas, per Bloomberg.
TikTok has until June 19 to find a new owner in the U.S. and separate from its parent company, ByteDance, or face a ban. The deadline is in response to a law passed by Congress in April 2024 and has been extended twice by President Donald Trump as TikTok attempts to find a buyer. Trump, who has previously stated that he has "a little warm spot" for TikTok, said earlier this month that he may extend the deadline further if no deal is reached by June 19.
So far, TikTok has received bids from Oracle co-founder Larry Ellison, AI startup Perplexity, AppLovin, Amazon, and former LA Dodgers owner Frank McCourt Jr., who teamed up with Shark Tank investor Kevin O'Leary and Reddit co-founder Alexis Ohanian on The People's Bid for TikTok, among others.
