TikTok Shop has communicated to its U.S. employees about impending "difficult decisions," hinting at potential layoffs as part of ongoing restructuring in its e-commerce unit. Launched in 2023, the platform rapidly gained popularity, achieving impressive sales figures, notably $100 million on Black Friday. However, challenges such as a possible U.S. ban and declining sales due to tariffs on Chinese sellers have raised concerns. This memo follows past layoffs and shifts in control to executives from TikTok's Chinese operations, further complicating the e-commerce landscape for the company.
TikTok Shops is the fastest-growing sales channel we've ever had at MaryRuth's. It took off faster than Amazon, faster than retail, faster than anything we've seen. It's messy. It's unpredictable. But the upside is real.
The memo follows a series of restructuring efforts to TikTok's e-commerce unit. In April, TikTok let go of several staff members from the U.S. e-commerce unit's governance and experience, due in part to failing to meet performance goals.
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