TikTok's Recent Layoffs Clash with January Promises of Job Security

Key Takeaways

It is reported that TikTok is shrinking its U.S. e-commerce division.
This step follows ByteDance’s leaders expressing discontent over their company’s performance in U.S. e-commerce.
In January, TikTok informed its U.S. staff that the impending ban would not jeopardize their employment.

TikTok is letting go of employees from its U.S. e-commerce division, as this unit has faced criticism for not achieving desired expansion goals.

The reduction occurs as TikTok’s status in the U.S. continues to be uncertain. in the balance Nevertheless, the company has formerly attempted to calm American employees, ensuring them that their positions are safe despite the possibility of the platform being prohibited.

TikTok Downsizes U.S. Team

Based on reports from Business Insider citing employee sources, the most recent round of layoffs will impact the "governance and experience" team within TikTok’s e-commerce division, specifically those responsible for ensuring the security of TikTok Shop.

The publication previously reported Those department workers who got low ratings for their performance had the option to either take a severance package or create a plan to improve their work.

In the meantime, ByteDance’s leaders based in China have specifically called out TikTok’s U.S. e-commerce division for not meeting their targets.

American E-Commerce Underwhelms

During a company-wide gathering in February, the worldwide e-commerce chief Kang Zeyu addressed everyone. reportedly commended TikTok Shop for its robust expansion in Southeast Asia and the U.K.

"But the United States didn't fare well in 2024, with numerous objectives unmet during the first three quarters," he deplored.

US Job Market and the Impact of the TikTok Prohibition

As TikTok’s e-commerce plans in America lag behind those in other regions, uncertainties surrounding the app’s future in the U.S. add another layer of complexity for local employees.

Before the original deadline for ByteDance to either sell TikTok or face a U.S. ban, the company’s Global Head of Human Resources, Nicky Raghavan, minimized the possible impact on employment.

"Your job security, salary, and benefits are guaranteed, and our offices will stay operational, even if we haven't addressed this issue by the January 19th deadline," Raghavan stated in a message. message to staff.

Since then, the deadline has been extended. extended twice , with TikTok emerging as a pawn amid the intensifying U.S.-China trade conflict.

It remains unclear what this will mean for the company's workers in America. However, should the application eventually close down in the U.S., Raghavan might find herself unable to uphold her commitment for much longer.