TikTok has instructed its e-commerce team in the U.S. to shift to remote work, causing concerns about potential layoffs. This decision reflects the company’s need to navigate a difficult regulatory landscape in the U.S., where there are ongoing discussions about a possible nationwide ban.
According to an internal memo from Mu Qing, who recently took charge of TikTok Shop’s U.S. operations, staffing changes are forthcoming. Qing emphasized that these adjustments are part of a strategy to establish a more efficient operational model for long-term growth. There’s some tension surrounding this, which isn’t surprising given the circumstances.
On Tuesday, staff received an email stressing the importance of support and understanding during this transition. The message, sent late in the day, thanked employees for their patience amid all these discussions.
TikTok has established a significant presence in the U.S., with over 1,000 employees primarily based near Seattle, in addition to offices in New York, Texas, and California. However, the e-commerce sector is grappling with tough times, particularly in 2025, as sales are reported to be declining due to increasing global tariffs and overall economic instability. In fact, there has been a noticeable drop in daily sales from foreign, especially Chinese, sellers during late March, likely impacted by rising tariffs introduced in April.
Here’s the full message sent to the e-commerce staff:
Over the past month, I have taken this opportunity to review and assess the best ways to support our business in facing the opportunities and challenges ahead. We analyzed our operational model closely to ensure it aligns with our long-term growth objectives. Consequently, we will start informing about changes to the organization and HR in regard to U.S. e-commerce operations, starting Wednesday, May 21st (PT). All updates will be communicated via company email, followed by outreach from HR. To facilitate these discussions, we recommend working remotely on May 21st. Your patience and understanding are greatly appreciated as we work through these challenging times. We are committed to providing as much support as possible throughout this transition.
