Chinese social media giant TikTok has asked some of its US staff to work from home amid reports that the company is preparing for layoffs. Employees in the e-commerce division have been instructed to work remotely and await “difficult decisions.” The US e-commerce arm is bracing for operational and staffing changes as the Chinese-owned company looks to streamline its business.
According to a report by Bloomberg, citing an internal memo, Mu Qing — who took charge of TikTok Shop in the US last month — said the company is exploring ways to “create a more efficient operating model.”
Employees were told to expect changes to the US e-commerce operations centre and global key accounts teams beginning early Wednesday. The anticipated layoffs follow recent leadership changes, including Mu’s appointment. He previously led the e-commerce division of ByteDance’s Douyin platform in China and now oversees TikTok’s US operations from the Seattle area.
In a late Tuesday email, Mu assured staff that those affected would receive “compassion and support” during the transition. TikTok has over 1,000 employees in the Seattle region, with additional offices in New York, Texas, and California.
“We appreciate everyone’s patience and understanding as we navigate these difficult discussions,” he wrote.
TikTok Shop has seen rapid growth, but the app’s future in the US remains uncertain due to the looming threat of a ban unless its Chinese parent company sells its American operations.
TikTok, which has 170 million monthly active users in the US, is also facing new challenges from President Donald Trump’s renewed trade policies, including tariffs on Chinese goods and the removal of a tax exemption for low-value imports under the de minimis rule.
After launching in-app shopping for US users in 2023, TikTok has been betting on e-commerce to better monetise its vast user base, the news agency reported. In fact, TikTok Shop recently surpassed rivals like Shein and PDD Holdings’ Temu in US sales — just ahead of the latest wave of trade restrictions, it added.
The platform’s rise has drawn increasing scrutiny following the passage of a bipartisan law that threatens to ban TikTok in the US over national security concerns unless it is sold by its Chinese owner, ByteDance.
The effort, which began during Trump’s first term but was blocked in court, has now regained momentum. Trump has given ByteDance more time to finalise a sale — a process that has attracted interest from major players including Amazon and Oracle.
