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TikTok is continuing its wave of job cuts, with its e-commerce division once again facing downsizing. As the popular short-form video platform tries to streamline operations and refocus strategy, sources say the company has quietly laid off more workers in the U.S. and abroad marking another chapter in its ongoing organizational shake-up.
The latest round of cuts, which reportedly affected dozens of employees, underscores TikTok's struggle to scale its online shopping ambitions while dealing with internal restructuring and external political scrutiny.
Why TikTok’s E-Commerce Team Is Shrinking
TikTok’s parent company, ByteDance, has been aggressively pushing e-commerce features through its TikTok Shop product, betting big on turning the app into a hybrid of entertainment and shopping. But the rollout hasn’t been smooth.
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Adoption in Western markets, especially the U.S., has been slower than expected.
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Operational inefficiencies and internal overlap between teams have prompted restructuring.
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Ongoing geopolitical pressure and potential regulatory hurdles have complicated long-term planning.
In short, TikTok is scaling back in some areas to double down on where it sees real traction.
Rolling Layoffs, Not a Single Event
Rather than announcing sweeping cuts all at once, TikTok has opted for what insiders describe as “rolling layoffs” a series of smaller, less visible job reductions spread over months. This allows the company to stay under the radar, but also creates ongoing anxiety among employees unsure if they’re next.
Sources say the most recent layoffs primarily affected e-commerce support teams, including logistics, customer service, and internal operations staff.
Impact on U.S. Operations
Although TikTok Shop continues to expand in the U.S., the platform is recalibrating its workforce to match realistic growth goals. The U.S. team has seen both hiring and firing in quick succession as leadership attempts to optimize for efficiency.
Many of those impacted were reportedly based in Los Angeles and Seattle, two of TikTok’s key U.S. hubs for engineering and commerce.
What This Means for TikTok’s Future
Despite the layoffs, TikTok isn’t pulling the plug on its e-commerce dreams. Instead, the company appears to be pivoting toward a leaner, more focused approach investing in core technology, better vendor partnerships, and AI tools to personalize shopping experiences.
Still, the repeated workforce cuts raise questions about the sustainability of TikTok’s retail ambitions, especially as competitors like Amazon and Meta ramp up their own social commerce efforts.
Final Thoughts
TikTok may still be the king of short-form content, but becoming a major e-commerce player is proving far more complicated. With rolling layoffs continuing into 2025, the company is clearly feeling the pressure to prove that its shopping platform can deliver not just engagement, but profit.
As TikTok Shop evolves, both employees and merchants will be watching closely to see what stays, what goes, and who’s left standing.
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