TikTok Shop Restructures: Cuts and Organizational Changes in the US

TikTok Shop, a key e-commerce arm of ByteDance, is undergoing significant organizational and staffing changes in the United States. These adjustments are part of the company’s efforts to build a more efficient operational model amidst political and market uncertainties.

In an internal memo to employees, Mu Qing, the new head of TikTok Shop US, announced that the changes would affect both US offices and global teams working with key clients. The restructuring is set to begin early Wednesday morning.

This development follows last month’s leadership changes when Mu Qing, previously head of e-commerce at Douyin, assumed leadership of TikTok Shop’s US operations.

TikTok Shop’s US division is headquartered in Seattle, with over 1,000 employees, and additional offices in New York, Texas, and California.

In his Tuesday evening message, Qing emphasized that the company will provide "compassion and support" to all affected employees during this transition period.
"We deeply appreciate the patience and understanding of everyone who is helping us navigate these difficult conversations," he stated.

Despite TikTok Shop’s rapid growth, its future in the US remains uncertain. ByteDance faces increasing pressure to divest its US operations due to bipartisan national security concerns, further intensified by recent legislative developments.

TikTok, with over 170 million monthly active users in the US, is also under scrutiny as political tensions between the US and China escalate. The removal of tax exemptions for small-value packages and the introduction of new tariffs have further complicated the operational environment for Chinese companies in the US.

Nevertheless, TikTok Shop continues to be a vital part of ByteDance’s global monetization strategy. In 2023, it outpaced competitors like Shein and Temu in US sales volume.

Despite the challenges, TikTok is focusing on internal restructuring to solidify its position in the e-commerce market and continue its growth.