TikTok, the viral video app that’s taken over smartphones around the world, is undergoing another round of internal restructuring this time targeting its e-commerce division. In an internal memo sent to staff, TikTok outlined changes to its organizational structure and leadership teams, signaling a shift in how the platform plans to build and scale its online shopping features.
The news comes on the heels of multiple rounds of layoffs within TikTok’s U.S. and global commerce teams, highlighting the company’s struggle to align ambitious growth plans with operational efficiency.
Major Personnel Shifts Underway
According to insiders and a company memo reviewed by employees, TikTok is reassigning leadership roles and adjusting reporting structures across departments involved in the e-commerce sector. This includes changes in middle management, international coordination, and regional oversight for teams focused on TikTok Shop a key initiative aimed at making the app a central hub for social commerce.
The company stressed that the changes are part of a broader reorganization strategy, not a mass layoff event. However, team morale has been impacted, as some employees are left unsure about future responsibilities or long-term job security.
Why TikTok Is Restructuring Now
TikTok’s expansion into online shopping has been fast and aggressive, especially in the U.S. and Southeast Asia. But sustaining that growth has proven more difficult than expected. The recent memo suggests that leadership is now realigning priorities to make the e-commerce push more sustainable and competitive.
Here’s what’s likely driving the reorganization:
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Complex management layers that slowed down decision-making
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Inconsistent performance metrics across regions
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Internal overlap between commerce, product, and operations teams
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The need to quickly adapt to market feedback from sellers and users
The goal, according to company leadership, is to build a leaner and more responsive commerce organization that can better support TikTok Shop globally.
Employee Reactions: Mixed Signals
For employees, the changes have sparked a mix of anxiety and optimism. While some see the reorganization as a chance to streamline projects and clarify ownership, others worry that it foreshadows more layoffs or instability ahead.
Several team members noted that TikTok’s communication around the changes lacked clarity, leading to confusion in execution and responsibilities across departments.
The Bigger Picture for TikTok Commerce
TikTok is still fully committed to turning the app into a major e-commerce player. The company continues to invest in live shopping features, affiliate tools, seller onboarding, and logistics partnerships. However, the new strategy seems focused on scaling smarter not just bigger.
With competitors like Amazon, YouTube, and Instagram also making major moves into the social commerce space, TikTok’s ability to adapt quickly and efficiently will be crucial to its success in 2025 and beyond.
Final Thoughts
TikTok’s internal restructuring highlights the challenges of blending a high-growth social media platform with the complexities of global e-commerce. As the company looks to stabilize its organization, streamline leadership, and refocus its strategy, all eyes are on whether TikTok can balance innovation with internal clarity.
Whether this reorg brings more cohesion or more confusion remains to be seen.