TikTok has initiated a third round of layoffs in its US e-commerce division, TikTok Shop, since April 2025. The company announced these organizational changes in an internal memo, affecting staff globally but focusing on the US team. The layoffs are part of a broader restructuring effort to realign with strategic priorities after a year of missed internal sales targets. Although TikTok has not disclosed the exact number of job cuts, reports indicate that more than 60 employees in the Bellevue office will be laid off starting July 28. Concurrently, some Chinese employees at TikTok have requested compensation for additional tax burdens incurred due to their relocation to the United States, as these taxes exceed China's maximum 45% rate. This request highlights ongoing challenges within the workforce amid the company's restructuring. Meanwhile, TikTok is reportedly replacing some US staff with managers connected to China. The layoffs come amid broader operational shifts, including the merger of TikTok Shop with Tokopedia in Indonesia, which has led to dissatisfaction among sellers and a migration to rival platforms.