TikTok Shop, the e-commerce arm of the popular video app, has conducted its third round of US layoffs since April, Bloomberg reported on July 3rd. This latest workforce reduction targets employees within its US operations.
A TikTok spokesperson confirmed the cuts, stating, “As the TikTok Shop business evolves, we regularly review our operations to ensure long-term success. We’ve made the difficult decision to adjust parts of our team to better align with strategic priorities.” The company did not disclose the number of employees affected.
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These layoffs follow reported struggles for TikTok Shop's US division to meet internal sales targets. Previous job cuts occurred in April and May, indicating ongoing restructuring. Alongside the layoffs, the division has reportedly been replacing US-based staff near Seattle with managers connected to its Chinese parent company, ByteDance. This shift aims to mirror the successful e-commerce model ByteDance operates in Asia.
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Despite these challenges and restructuring, TikTok Shop remains a critical growth driver for ByteDance globally. It expanded into several European countries, including Germany and Spain, last year.
The layoffs occur against a backdrop of significant uncertainty for TikTok's future in the US. A 2024 US law mandates that ByteDance divest its ownership of TikTok's US operations to avoid a nationwide ban, citing national security concerns. TikTok continues to contest this law in court.
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