TikTok Cuts Staff as its Shopping Push Fails to Reach Targets

Posted on July 2, 2025
Source: Social Media Today – Latest News by Andrew Hutchinson. Read the original article

TL;DR Summary of TikTok’s Third Round of U.S. eCommerce Layoffs Amid Ambitious Sales Goals

TikTok is conducting a third round of layoffs in its U.S. Shop department due to underwhelming performance against its 2024 targets. While U.S. sales have grown, they lag behind the massive success of its Chinese counterpart, Douyin, which generated $490 billion in GMV. TikTok is expanding its in-stream shopping tools to new markets like Japan but faces cultural challenges in Western regions where consumers prefer specialized shopping platforms. Despite setbacks, TikTok continues to push new shopping events and aims to leverage expertise from Douyin to boost its eCommerce growth.

Optimixed’s Overview: Navigating TikTok’s Global eCommerce Ambitions and Market Challenges

Recent U.S. Layoffs Highlight TikTok’s Growing Pains in eCommerce

TikTok has initiated the third round of layoffs within its U.S. eCommerce division, signaling challenges in meeting aggressive sales targets for 2024. Despite a reported threefold increase in sales during last year’s Black Friday and generating approximately $30 billion in gross merchandise volume (GMV) for 2024, these figures fall short of the platform’s expectations.

Douyin’s Success as a Model for Global Expansion

  • Douyin, TikTok’s Chinese counterpart, achieved remarkable growth with $490 billion in GMV in 2024, driven largely by live-stream shopping.
  • This success underscores TikTok’s strategy to replicate similar in-stream shopping experiences globally.
  • By leveraging Douyin’s proven blueprint, TikTok aims to capitalize on the lucrative eCommerce market worldwide.

Market Dynamics Differ Between Asia and the West

While Asian markets, including the newly added Japan region, show strong acceptance of integrated in-app shopping, Western consumers tend to prefer distinct platforms for different activities — shopping on Amazon, socializing on Facebook, and video consumption on TikTok.

  • This cultural divide creates hurdles for TikTok’s in-stream shopping adoption in Western countries.
  • Asian consumers’ openness to multi-functional platforms presents a more fertile environment for TikTok’s eCommerce tools.

Future Outlook: Continued Innovation Amid Staffing Challenges

Despite workforce reductions, TikTok is pushing forward with new shopping initiatives such as “Shop Locally Made” and “Deals for You” in the U.S. market. The company may also integrate expertise from Douyin to enhance its promotional strategies and accelerate growth.

TikTok’s persistence highlights the enormous potential and competitive pressure in the evolving social commerce landscape, with the platform striving to align its offerings closer to consumer preferences worldwide.