TikTok is undergoing a restructuring of its global e-commerce division, a move that includes changes to its governance and experience team. This reorganization grants more authority to executives based in China and Singapore, especially in the oversight of emerging markets such as Latin America. A company memo, reviewed by Business Insider, indicates that global leaders will take charge of roles traditionally managed by local teams, including moderation and partner management.
The restructuring coincides with layoffs within the U.S. governance and experience team, which is responsible for overseeing intellectual property protection, seller compliance, and marketplace safety on TikTok Shop. There is growing scrutiny on TikTok's performance in the U.S., with top executives expressing dissatisfaction with the e-commerce team's results in 2024. This uncertainty is compounded by political factors, as TikTok faces potential divestment from its U.S. operations due to legislative pressures.
As TikTok expands its e-commerce efforts in Latin America—starting with a recent launch in Mexico and plans to roll out services in Brazil—the company has opted for oversight from its global leadership rather than local management. This shift has raised questions among some employees about the effectiveness of this approach in a diverse market.
The restructuring reflects a broader trend within TikTok's strategy as it navigates challenges in the U.S. while seeking growth opportunities in Latin America, where e-commerce spending is projected to rise significantly in the coming years. The company's success in this new region will depend on its ability to adapt its governance model to local market dynamics.