TikTok Shop layoffs expected as employees told to work from home: report

(KRON) — TikTok Shop employees in the U.S. are expecting layoffs after being told to work from home Wednesday, according to reports. The company told its e-commerce staff to stay home while awaiting emails about “difficult decisions,” Bloomberg is reporting.

Citing an internal memo, Bloomberg is reporting that Chinese-owned TikTok is looking for ways to “create a more efficient operating model.” Mu Qing, who took over TikTok Shop in the U.S. last month, reportedly told workers to expect “operational and personnel changes to the e-commerce U.S. operation center and global key accounts teams beginning early on Wednesday.”

Launched in 2023, TikTok Shop has reportedly seen quick growth. However, the future of TikTok’s U.S. operations overall remains uncertain with a potential ban still looming.

The Trump administration’s on-again, off-again tariffs with China and other trading partners have further complicated the app’s e-commerce operations.

Last year, despite the threat of a looming ban, TikTok reportedly agreed to sublease a large office in San Jose from Roku.