TikTok Shop Faces Layoffs Amid E-Commerce Restructuring and U.S. Pressure

TikTok and its parent company ByteDance are preparing for another round of layoffs, this time targeting the global e-commerce division, according to internal memos obtained by Business Insider. The restructuring will primarily impact TikTok Shop, the platform’s online retail arm, and is set to be announced early Wednesday.

The internal communication cited “organizational and personnel changes” aimed at streamlining operations and improving long-term efficiency. ByteDance said the changes come after a “careful analysis” of performance and structure. TikTok Shop has already faced multiple waves of layoffs throughout 2025.

The U.S. e-commerce team has been under pressure after failing to meet its 2024 performance targets. The situation worsened in 2025, with order volumes declining due to increased tariffs imposed by President Donald Trump. These tariffs have added significant cost burdens, slowing consumer activity on the platform.

In addition to performance-related challenges, growing uncertainty among staff has emerged as ByteDance continues negotiations with the U.S. government. A new law passed earlier this year mandates the divestment of TikTok’s U.S. operations to avoid a potential nationwide ban. These developments have added to instability within the company’s U.S. division.

TikTok’s e-commerce ambitions, once a key growth driver, are now facing headwinds from regulatory, geopolitical, and internal structural issues. As the company seeks to stabilize operations and regain momentum, the upcoming layoffs signal a broader shift in strategy amid a complex and evolving digital commerce landscape.

This development comes as major tech firms continue to restructure in response to global economic uncertainty, regulatory scrutiny, and shifting consumer behavior. ByteDance’s move reflects the growing challenges for platforms balancing aggressive expansion with compliance and sustainability.