TikTok Shop Job Cuts Loom Amid Ban and Tariff Uncertainty

TikTok’s U.S. eCommerce workers are reportedly facing possible job cuts.

That’s according to a Bloomberg News report Wednesday (May 21), citing an internal memo to the social media company’s employees advising them to work from home as they await emails on “difficult decisions.”

The Chinese-owned company is examining ways to “create a more efficient operating model,” wrote Mu Qing, who took over TikTok Shop in the U.S. in April.

He added that workers should expect “operational and personnel changes” to the eCommerce U.S. operation center “and global key accounts teams beginning early on Wednesday.”

According to the report, TikTok, owned by Chinese tech giant ByteDance, has more than 1,000 workers in the Seattle area, with offices in California, New York and Texas. PYMNTS has contacted the company for comment but has not yet gotten a reply.

As Bloomberg notes, TikTok faces an uncertain future in the U.S., due to the threat of a ban if ByteDance can’t manage to sell the U.S. arm of its business.

The U.S. government, under President Joe Biden, signed a law last year requiring ByteDance to sell TikTok due to national security concerns related to the app’s ties to China, giving the company until Jan. 19 of this year to make the sale.

President Donald Trump later extended the deadline until April, and has since extended it once more until June 19. The president has said that China’s objections to U.S. tariffs derailed a possible deal just before it was about to be signed.

Putting the ban aside, the tariffs could pose a threat to TikTok in another way, as they apply to Chinese exports, with small-value parcels no longer covered by the de minimis exemption.

In other social commerce news, PYMNTS wrote recently about the “nuanced dynamic” around the influencer marketing landscape, where these endorsements hold some sway, but rarely are the sole deciding factor in consumer spending decisions.

Recent research from PYMNTS Intelligence shows that 56% of American consumers make an influencer-recommended purchase at least once a year, with 12% doing so frequently (more than six times per year).

“However, the research underscores that while influencers may initiate interest, they are often just one touchpoint in the consumer journey,” PYMNTS wrote. “A striking 95% of consumers who have made an influencer-recommended purchase typically undertake additional research beforehand. This supplementary investigation frequently involves checking multiple alternative information sources.”