Overview

• TikTok Shop employees in the U.S. were told to work from home on May 21 ahead of expected layoffs and organizational changes.
• The company cited the need for a more efficient operating model following a prolonged decline in e-commerce sales.
• Global tariffs on Chinese exports, including the removal of the de minimis exemption, have negatively impacted TikTok Shop's performance.
• ByteDance, TikTok’s parent company, faces a U.S. government-mandated deadline of June 19, 2025, to divest the app over national security concerns.
• TikTok has undergone multiple rounds of restructuring in 2024 and 2025, with increased oversight by Chinese and Singaporean executives.