Is a slow drift towards layoffs better than a quick clean cut? Both hurt employees and their careers in equal measure so it’s unsurprising that workers are panicking over approaching TikTok layoffs. In a new memo to US TikTok Shop employees, the company asked workers to work from home on Wednesday, in light of the “difficult decisions” that were to come. For another business, this could mean a couple of different things, but with the potential ban creeping on the company and the trend of layoffs which has already taken up most of our time in 2025, it’s likely that TikTok is heading towards job cuts.
Mu Qing, who took over heading the TikTok Shop segment, hinted at the job losses, stating that workers should expect “operational and personnel changes to the e-commerce US operation center and global key accounts teams beginning early on Wednesday.” TikTok employees accepted the WFH order the best they could, but it’s hard to focus on work when you’re distracted by the possibility that you might soon be out of a job.
We have very few details about the TikTok layoffs but its certain that change is coming. (Image: Pexels)
What We Know About the TikTok Layoffs in 2025—Changes Are Coming
Popular social media platform TikTok has captivated audiences worldwide, operating as a subdivision of Chinese business ByteDance. With over 170 million active users and a successful marketplace for businesses both big and small, TikTok is flourishing. Unfortunately, this isn’t enough to guarantee a flourishing career for the employees who make it possible.
The business does not exclusively operate in the US, but its struggles to keep the company full-functionally currently revolve around its US operations. The TikTok layoff memo did not indicate how many employees were to be affected, but it does suggest that the e-commerce wing and global key accounts teams would bear the brunt of these cuts.
TikTok’s US restructuring plans come in light of considerable uncertainty about whether the company will be allowed to continue operating in the region. Staffers have been said to have described the climate at the organization as “quietly volatile” which shows that the calm and collected approach in the layoffs memo from TikTok is not necessarily being felt by the employees.
What Is the Reason for the TikTok Job Cuts?
The TikTok layoff memo did not expand on the reason for the cuts or why the company was being forced towards “difficult discussions,” other than mentions of a desire to create more efficient operating models for growth. The potential TikTok Shop job losses have been linked to a few different factors.
In April, the company laid off members of the e-commerce unit’s governance and experience team due to failure to meet certain performance goals. The fresh round of layoffs at TikTok could follow a similar pattern, but it’s more likely that external factors are involved.
TikTok Presence in The US Remains Uncertain
TikTok’s US restructuring plans could be linked to the uncertainties surrounding the businesses presence in the region. After a brief ban in the US that saw the app going down for less than a day, TikTok came back with a bang, with the promise of negotiating a new deal with the administration.
The ban deadline was extended for ByteDance to sell the US segment of its TikTok business to a US-based investor, but it doesn’t appear that any progress has been made on this front. The deadline may soon be extended even further, but TikTok is clearly looking into job cuts to shrink the business before either selling it off or shutting it down.
Tariffs Could Be Behind the TikTok Shop Job Losses
The TikTok layoff memo was primarily sent out to the e-commerce staff members, which is an indication that the cuts could have to do with the falling sales numbers. Due to the tariffs that have been announced on various goods, particularly the Chinese products that sell well on the platform, the prices have gone up on products, hitting businesses hard.
According to Business Insider, TikTok Shop’s daily US sales number from foreign businesses was down by around 25% month-over-month as a result of the tariffs. The rush to cut jobs may be a preemptive move to cut costs while the organization finds its place in the US market once more.
Is the TikTok Layoff Memo Enough of a Warning for Workers to Prepare for Bad News?
TikTok employees accepted the WFH order without complaint, but the announcement likely only came hours before employees began receiving emails about the job cuts. However, the possibility of layoffs was brought up over a month ago, giving workers some time to prepare for the incoming news. In recent years, employees are constantly operating with the axe hanging over their heads, ready to cut them off from the workforce in a heartbeat.
While we don’t know the terms of the TikTok layoffs and whether employees will be let go immediately or given a few weeks to prepare for their next role, the decision is something that HR leaders generally need to treat with care. Many businesses inform employees about shutdowns or layoffs on the day that the switch begins in order to keep them productive for as long as possible and ensure they stay focused on the present. It also helps them wrap up tasks, instead of giving employees a chance to quit and find a new job before the layoffs can begin.
Aim for Transparency in this Era of Layoffs
This strategy works in theory, but it’s also true that employees can often sense a shift in the business and see that change is coming. They work with the possibility of layoffs on their mind one way or another, which is why honesty is the best approach in most cases. Navigating layoffs is one of the hardest parts of an HR team’s responsibility, and these teams need to keep the employees’ well-being in mind as much as possible.
Even employees who do not end up losing their jobs can be affected by how their employer handles layoffs, so now is a good time to get a working strategy in place for when the time comes.
We’ll provide more updates on the TikTok layoffs as soon as we hear more, so make sure to check back in. Subscribe to The HR Digest for more insights into how the landscape of work and employment is evolving in 2025.
