TikTok Shop US Employees Told to Work From Home Amid Layoff Fears. Read Full Memo

In a significant move, TikTok has directed its US e-commerce staff to work remotely, sparking speculation of impending layoffs. This move comes as TikTok navigates a challenging regulatory landscape in the US, including threats of a national ban, and seeks to adapt its business model to better withstand these pressures, Business Insider reported. An internal memo from Mu Qing, the new head of TikTok Shop's US operations, announced that operational and staffing changes would start on Wednesday. The company said it was making the changes after "careful analysis of how to create more efficient operating models for the team's long-term growth," according to the memo

Notably, Mu Qing, previously of ByteDance's Douyin e-commerce division in China, recently took charge of TikTok Shop's US operations based in the Seattle area to guide the company's retail strategy in the American market.

TikTok's email to employees, sent late Tuesday US time, also assured them of "compassion and support" during the transition. "We appreciate everyone's patience and understanding as we navigate these difficult discussions," the email said.

The company has a significant presence in the US, with over 1,000 employees near Seattle and additional offices in New York, Texas, and California.

TikTok's US e-commerce operations have faced a challenging start in 2025, with sales declining due to global tariffs and economic uncertainty. Employees reported to Business Insider that daily US sales from foreign sellers, particularly those in China, were hit hard by steep tariff increases in April, leading to a significant sales drop on the platform beginning in late March.

Here's the full memo sent to e-commerce staffers:

Over the past month, I have taken the opportunity to learn and evaluate how best to support US business in meeting the opportunities and challenges ahead of us. We have undergone careful analysis of how to create more efficient operating models for the team's long-term growth and, as a result, will be communicating organizational and personnel changes to the e-Commerce US operations, US operations center, and global key accounts teams beginning early on Wednesday, May 21 (PT).Our goal is to communicate with employees swiftly and with as much clarity as possible. All updates will be made via your company email, followed by HRBP outreach.To best facilitate these conversations, it is recommended that you work remotely on Wednesday, May 21. We appreciate everyone's patience and understanding as we navigate these difficult discussions. We are committed to supporting our teams throughout this transition with as much compassion and support as possible.