In a new round of job cuts, TikTok has laid off several members of its U.S.-based e-commerce team, reflecting both internal challenges and the broader geopolitical headwinds facing the company. The layoffs primarily affect the platform’s global governance and experience (GNE) team — the unit responsible for maintaining safety and integrity on TikTok Shop. This move follows earlier cuts to TikTok’s global trust and safety team and comes at a time of heightened pressure on the ByteDance-owned platform amid U.S.-China trade tensions.
According to multiple TikTok employees who spoke to Business Insider, the decision to cut staff was tied to poor performance within the U.S. e-commerce division. The GNE team, which manages seller compliance, monitors product listings, and safeguards intellectual property, had reportedly failed to meet key performance benchmarks in 2024.
Internal dissatisfaction had been brewing for some time. During a company-wide meeting in February, TikTok’s top e-commerce executive Bob Kang singled out the team’s underperformance. A subsequent wave of annual performance reviews in March saw several team members receiving low ratings, which triggered performance improvement plans for some — and severance exits for others.
Though the company has not publicly confirmed the number of layoffs, the impact has been significant enough to be noticed across multiple departments involved in TikTok Shop operations.
Cuts to a Crucial Team
The GNE team plays a vital role in ensuring marketplace safety for TikTok Shop, TikTok’s ambitious foray into e-commerce. Their responsibilities include everything from identifying counterfeit goods to monitoring inappropriate product listings and ensuring that sellers adhere to platform guidelines.
While TikTok Shop has seen some success in markets like Southeast Asia and the UK, its growth in the U.S. has lagged behind expectations. Analysts suggest that slow consumer uptake, tough competition from Amazon and Shopify, and increasing regulatory scrutiny have hampered TikTok’s ability to scale its marketplace in the U.S.
The e-commerce layoffs come on the heels of similar reductions in TikTok’s global trust and safety team earlier this year. That team handled content moderation across a broader swath of the platform, not limited to commerce-related content. Taken together, the cuts suggest a strategic pivot by ByteDance, possibly aimed at streamlining global operations and reducing redundancies amid operational challenges and geopolitical uncertainty.
This internal reshuffle also highlights the cost of TikTok’s aggressive push into e-commerce. While the company invested heavily in TikTok Shop to diversify revenue beyond advertising, the effort has yet to pay off in a meaningful way in the U.S.
Trade Tensions and Political Uncertainty Cloud the Picture
These job cuts come against the backdrop of renewed trade tensions between the U.S. and China. In 2024, the U.S. passed legislation requiring ByteDance to divest from TikTok’s U.S. operations, citing national security concerns. ByteDance failed to meet the deadline, leading to a brief shutdown of TikTok in the U.S. market.
Former President Donald Trump, who has re-entered the political spotlight, had initially supported divestment negotiations. However, the deal reportedly collapsed following the U.S. administration’s decision to levy new tariffs on China, adding another layer of complexity. Trump has since instructed the Department of Justice not to enforce the divestment law, offering TikTok a temporary reprieve — but not a resolution.
ByteDance now finds itself navigating a difficult terrain. Any divestment or restructuring deal would require approval from both the U.S. and Chinese governments, a feat made more complicated by worsening diplomatic relations.
TikTok Becomes a Pawn in US-China Power Struggle
With both Washington and Beijing reluctant to make concessions, TikTok may find itself caught in a political crossfire — becoming a bargaining chip in broader U.S.-China trade negotiations. The future of TikTok’s U.S. operations is now deeply entangled in the geopolitics of international commerce, data sovereignty, and digital influence.
A ByteDance spokesperson confirmed ongoing discussions with the U.S. government but stated that no agreement had been finalized. Moreover, any eventual solution would be subject to Chinese regulatory approval — a significant hurdle in today’s political climate.
As TikTok continues to deal with regulatory challenges, performance issues, and global economic uncertainty, these layoffs may signal a recalibration of priorities within the company. While e-commerce remains a potentially lucrative avenue, ByteDance may be forced to re-evaluate its execution strategy, especially in markets like the U.S. where political risks are high.
For now, TikTok is pressing forward with a leaner workforce, even as it faces an uphill battle to secure its future in one of its most important markets.
