TikTok Shop head Woody Ching sent an internal email to U.S. employees last Tuesday evening informing them that they would be working from home on Wednesday because some of them would be receiving emails about their positions being cut.
Over the past month, I’ve taken the opportunity to learn and assess how best to support U.S. businesses with the opportunities and challenges we face.
As a result of our careful analysis of how to create a more efficient operating model for the long-term growth of our teams, we will begin communicating organizational and staffing changes to the eCommerce U.S. Operations, U.S. Operations Center and Global Key Accounts teams beginning early Wednesday morning, May 21 (Pacific Time).
Our goal is to communicate quickly and clearly with employees. All updates will be sent via company email, followed by contact from HRBP.
To best facilitate these conversations, it is recommended that you work remotely on Wednesday, May 21st.
We appreciate everyone’s patience and understanding as we navigate these difficult discussions. We are committed to giving our team as much love and support as possible throughout this transition.
Recently, as we looked at the charts, we noticed that a product called Creati in the Brazilian Graphics & Design chart has been consistently in the top 5 of the revenue charts on iOS, and at one point in the first two months, it shot to the top of the graphic download charts on iOS in the US.
According to Business Insider, starting last Wednesday morning, employees began receiving emails informing them that they were being affected by layoffs.
It’s unclear how many employees were affected by the layoffs. TikTok’s goal is to notify affected employees that they’ve been laid off as soon as possible, Woody Green said in the email.
Last month, TikTok Shop had already laid off some of its U.S. employees as it reorganized its governance and experience teams.
TikTok officially introduced Shop to the U.S. market in September 2023. By 2024, TikTok Shop attracted more than 47 million U.S. shoppers, with Americans spending $32 million a day shopping on the social media app, according to a Capital One study.
The foreign media revealed that TikTok Shop’s daily sales in the U.S. dropped nearly 25 percent in early May from a year earlier due to the tariffs.
TikTok employs 7,000 people in the U.S., with more than 1,000 of them located near Seattle. The company has other offices in New York, California and Texas, according to Bloomberg.
In response to the new round of personnel transfers, domestic media also pointed out that TikTok Shop U.S. is currently facing problems, that is, the development is not as expected, failing to meet the target of 2024, if the existing problems are left untreated, it is estimated that this year will still not be able to complete the KPIs.
It is reported that TikTok’s U.S. users exceed 150 million, from the population base, per capita consumption potential, it should be the first. But in fact, the e-commerce conversion rate is much lower than that of Southeast Asia! Looking at the data for Q1 this year, TikTok Shop’s total global GMV was $10 billion, up 42% year-on-year. But actually break it down to the regions again. Thailand is #1 ($2.5-3 billion GMV, 217% QoQ growth), the US region is #2 ($2-2.5 billion), and Indonesia is #3 ($1.5-2 billion).
In addition, TikTok Shop U.S. region layout for nearly 3 years, but the overall live atmosphere, although gradually up, but the effect is not very satisfactory. Users in the U.S. region are still more receptive to the shelf platform than the model of live streaming with goods. And this piece, indeed, can not beat Amazon, and even before TEMU, SHEIN.
Look at it this way, change the domestic live plate made a result, experienced person in charge to control the U.S. region is too normal.
Article source: www.tiktokdatatool.com
