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TikTok Shop Announces New Wave of Global E-Commerce Layoffs

ByteDance is streamlining its e-commerce arm under US divestment talks that could force a sale or ban.

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Overview

  • On July 2, TikTok began notifying global e-commerce staff that their roles would be cut as part of a new efficiency-driven restructuring.
  • The reductions span moderation, product development, and creator and seller support teams across TikTok Shop worldwide.
  • This latest round follows multiple layoff waves since early 2024 after the division missed sales targets and saw order declines from new tariffs.
  • Leaders from China and Singapore have increasingly supplanted US executives to apply AI moderation and efficiency models from Douyin.
  • TikTok is negotiating with the US government under a 2024 law that could require ByteDance to divest its US assets by mid-September to avert a ban.