TikTok Layoffs in July 2025 as Suggested by Leaked Internal Company Memo

Leaked internal memo suggests TikTok layoffs coming July 2025. E-commerce division faces cuts amid performance struggles and tariff pressures affecting operations.

Written by

Kaustubh Saini

Edited by

Jaya Muvania

Reviewed by

Kaivan Dave

Updated on

Jul 2, 2025

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2 Min Read

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TikTok employees are preparing for possible layoffs after the company informed staff it would announce "organizational and personnel changes" Wednesday morning, according to a leaked internal memo viewed by Business Insider.

The changes will impact workers in TikTok Shop, the company's global e-commerce business. TikTok Shop has experienced several rounds of layoffs this year.

"Over the past month, we have assessed how we can best support our evolving Global E-commerce business in alignment with our mission and evolving goals in the market," the company wrote in the memo.

The changes stem from "careful analysis of how to create more efficient operating models for the team's long-term growth."

TikTok's U.S. e-commerce team has faced scrutiny from ByteDance leadership after failing to meet performance goals in 2024. The division encountered additional obstacles in 2025 following tariff increases on China, where many of TikTok's sellers are based. Weekly U.S. order volume declined from mid-April to mid-May after tariffs took effect.

🚨🇺🇸 TIKTOK EMPLOYEES BRACE FOR MASS LAYOFFS AS COMPANY ANNOUNCES "ORGANIZATIONAL CHANGES"

ByteDance just sent an internal memo warning global e-commerce staff of imminent "personnel changes" hitting Wednesday morning.

The TikTok Shop division has already endured multiple… https://t.co/vE8dN8Km8z pic.twitter.com/CJYiFj73hx
— Mario Nawfal (@MarioNawfal) July 2, 2025

The company has reduced staff through layoffs and performance reviews, offering some employees choices between performance-improvement plans or exits with severance. Over 100 TikTok Shop employees in the U.S. were either fired or left the company in recent months. Leaders from China and Singapore with Douyin experience have replaced departing U.S. team members.

The organizational changes occur amid broader uncertainty for TikTok's U.S. operations. The company is negotiating with the Trump administration over a 2024 law requiring ByteDance to divest TikTok's U.S. assets or face a potential ban. Trump has repeatedly delayed enforcement through executive orders.

"I think for many of us, we just want clarity," an employee told Business Insider. "These eternal extensions make no sense for anyone who works here. How can we plan our jobs and lives if every 90 days we might get banned or sold?"

There is NO Official Statement from Tiktok as of now.