TikTok layoffs: TikTok Shop, the video app’s US e-commerce division, has cut jobs for third time since April | Company Business News-OxBig News Network

Beleagured video sharing platform TikTok is undertaking a third round of layoffs since April in its US e-commerce business, TikTok Shop, according to a report by Bloomberg on July 3.

In an official statement, a spokesperon for TikTok confirmed the job cuts, saying, “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.”

There was no official confirmation from TikTok about the number of people being laid off, the report added.

TikTok Shop: US operations fail to meet sales targets

The report added that due to failure to meet annual internal sales targets, the US operations of TikTok Shop have undergone a series of changes over the last months. In April, the popular app company cut some jobs, followed by more layoffs in May, the report said.

The TikTok Shop team has reportedly also been replacing US-hired staff near Seattle, with managers connected to China. This is being done to “replicate” the success the app’s e-commerce business has seen under parent company ByteDance in Asia, as per the report.

Despite the changes, TikTok Shop has been the social media app’s fastest-growing business, and a major focus for ByteDance globally. Last year, TikTok Shop opened in five new countries in Europe, including Germany and Spain.

TikTok’s future in the US: Latest updates

Overall, the future of TikTok in the US remains in limbo as it faces potential ban due to national security concerns. US law passed in 2024, mandates that parent ByteDance divest from TikTok US to avoid the business being banned.

US President Donald Trump has extended the deadline for divestment till mid-September this year and earlier hinted at finding a new buyer for the app, subject to approval for sale from the Chinese government.

(With inputs from Bloomberg)