TikTok has conducted its third round of layoffs for the TikTok Shop U.S. team since April, according to a report from Bloomberg. The company has not disclosed how many jobs were impacted in this latest reduction.

Despite being TikTok’s fastest-growing business, TikTok Shop U.S. has fallen short of internal expectations. ByteDance initially set a goal to increase its U.S. e-commerce business tenfold to $17.5 billion in transaction volume, but drastically lowered projections after performance didn’t meet targets. TikTok Shop is now expected to achieve approximately $9 billion in U.S. sales for 2024, according to Singapore-based consultancy Momentum Works.

Leadership Restructuring

The layoffs come amid significant management changes, as ByteDance has recently brought in Chinese executives to oversee its U.S. e-commerce operations. Mu Qing has moved from Douyin, ByteDance’s Chinese e-commerce platform, to run TikTok Shop’s U.S. operations. Six additional leaders with Chinese backgrounds received appointments in April, while Nico Le Bourgeois, who previously oversaw U.S. e-commerce operations, was demoted.

Growth Metrics and Regulatory Uncertainty

Despite falling short of internal targets, TikTok Shop reports 120% sales growth compared to the same period last year. The marketplace now spans over 750 categories featuring more than 70 million products, with womenswear, beauty & personal care, health, sports & outdoors, and electronics among the top-performing categories.

TikTok’s fate in the U.S. remains uncertain as President Trump continues to delay the deadline for ByteDance to sell the app to an American entity following TikTok’s official ban. Trump recently announced that he has a potential buyer for the app, which is rumored to be a consortium that includes Oracle Corp., Blackstone Inc., and venture capital firm Andreessen Horowitz.

Global Expansion Continues

The U.S. challenges haven’t slowed TikTok Shop’s global expansion, with the platform recently launching in Japan, following earlier entries into France, Germany, and Italy in March. ByteDance plans to enter Brazil later this year.