TikTok Cuts Jobs Amid Uncertain Future in U.S. Market

TikTok has reportedly laid off some of its U.S.-based e-commerce governance and experience team just days after President Donald Trump extended the deadline for parent company ByteDance to divest its U.S. operations.

Details of the Layoffs

The layoffs affected members of the Governance and Experience team, which is responsible for marketplace safety, seller compliance, and intellectual property protection within TikTok Shop. According to Business Insider, five employees confirmed the cuts, although the total number of affected positions remains unclear.

This move comes at a time when TikTok’s e-commerce unit has faced criticism from global leadership for not meeting expectations. Earlier in February, top executive Bob Kang expressed concerns during an all-hands meeting, and several employees received low performance review scores in March. This led to severance-based exits or enrollment in performance improvement plans.

Context of Regulatory Challenges

The layoffs follow earlier cuts in February affecting TikTok’s global trust and safety team, which broadens its role in overseeing content moderation. TikTok has not issued a response to Benzinga’s request for comments regarding the current layoffs.

Why It Matters: The timing of these layoffs aligns with ongoing uncertainties regarding TikTok’s future in the U.S. market. Last week, Trump extended the deadline for ByteDance to divest its ownership, allowing an additional 75 days for compliance. The previous deadline had expired on Saturday.

A deal to sell TikTok had been agreed upon by ByteDance, the U.S. government, and prospective American investors but collapsed after Trump imposed new tariffs on Chinese goods, resulting in Beijing withholding approval.

Market Implications

In January, prior to TikTok’s originally proposed ban, Wall Street analysts spotlighted three companies that could significantly benefit from a TikTok shutdown: Meta Platforms, Inc. META, Snap Inc. SNAP, and Alphabet Inc. GOOG GOOGL.

Analysts from Morgan Stanley estimate that if only 10% of TikTok users in the U.S. switch to Meta’s apps, it could increase Meta’s 2026 earnings-per-share (EPS) by about $0.60, raising their estimate to roughly $30 per share. Meanwhile, Deutsche Bank analysts indicate that Snap might have the most percentage upside among the competitors.

Additionally, YouTube, a video platform under Alphabet, has potential to gain from TikTok’s declining user base, particularly in short-form content. Morgan Stanley projects that if YouTube captures 10% of TikTok’s viewing time, it stands to secure an additional $750 million in advertising revenue. This would represent a modest 0.3% increase in Alphabet’s total advertising revenue for 2026.

Meta has a robust growth score of 74.91%, according to Benzinga Edge Stock Rankings. Investors can explore how this compares with Snap, Alphabet, and others by following the provided link.