TikTok has asked its US-based e-commerce employees to work from home, fuelling speculation about imminent job cuts. The move is part of a restructuring of its operations as the company is facing immense regulatory pressures and business challenges in the US.
An internal memo from the new head of TikTok Shop’s US operations indicated that both operational and personnel changes would begin early Wednesday, 21 May 2025. The memo suggested a shift toward a more efficient business model, hinting at layoffs within the US e-commerce operations centre and global key accounts teams.
This exercise is taking place just weeks after leadership changes in the company. Mu Qing, formerly with ByteDance’s Douyin e-commerce division in China, recently took over the US operations of TikTok Shop, headquartered in the Seattle area. He is expected to steer the company’s retail ambitions in the American market.
TikTok Shop, launched in the US in 2023, has seen rapid growth, even surpassing platforms such as Shein and Temu in sales. Yet, its future is far from certain. The company is under intense scrutiny due to national security concerns raised by US lawmakers, leading to a bipartisan law requiring TikTok to divest its US operations or face a ban.
Ongoing trade tensions, including new tariffs and the closure of tax exemptions on small-value Chinese imports, have further complicated the company’s path forward. ByteDance now faces the pressure of selling TikTok’s US unit, a process that could take months. Companies such as Amazon and Oracle have reportedly shown interest.
As TikTok works to refocus its business, these workforce changes mark a shift in approach aimed at sustained growth amidst a volatile political and economic environment.
