In a definitive step to navigate the shifting geopolitical landscape, TikTok has begun a complex reorganization of its American workforce. The move, detailed in January 2026, involves partitioning thousands of U.S.-based employees into two distinct corporate entities as the company prepares to finalize a landmark $14 billion divestment deal.
This restructuring creates a clear internal boundary between the platform’s core social operations and its burgeoning commercial interests. A major call made by one of the most prominent social media platforms across the globe, TikTok’s decision to redistribute its US workforce exemplifies their refusal to work under a new venture with big names like Oracle, among others.
TikTok announces the splitting of its US staff
According to a Business Insider report, TikTok is reorganizing its US staff across different entities that are part of its parent company, ByteDance. Under the new arrangement, employees are being assigned to one of two organizations: TikTok USDS Joint Venture LLC or TT Commerce & Global Services LLC.
The former will serve as the primary U.S. operating entity, governed by a majority-American board and overseen by investors including Oracle and Silver Lake. This unit is specifically designed to manage high-stakes areas such as data protection, content moderation, and retraining the recommendation algorithm on domestic data.
In contrast, the newly formed TT Commerce & Global Services LLC will house employees focused on “global business lines,” primarily centered on TikTok Shop, advertising, and marketing. Unlike the U.S. joint venture, this entity will remain more closely tethered to ByteDance’s global infrastructure.
For the individuals behind the screens, this shift is more than just a change in letterhead. Employees in teams such as product development and e-commerce are becoming part of a global commercial arm, while their colleagues in trust, safety, and security are transitioning to the domestically controlled joint venture.
The reorganization is a direct response to the “divest-or-ban” legislation that has loomed over the company for years. By separating these functions, TikTok is attempting to satisfy federal national security requirements while simultaneously shielding its lucrative e-commerce engine from the most restrictive oversight.
The goal is to demonstrate that while a U.S.-controlled board manages American user data, the technical and commercial innovations that have made TikTok Shop a retail powerhouse can still draw on the company’s global expertise.
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TikTok’s staff challenges could persist till later
Amid the restructuring, the human element of this major decision taken by TikTok remains fraught with complexity. Staff members are navigating new reporting lines and a “relocate or resign” environment, as the company also moves toward a mandatory five-day in-office requirement for many teams. The split forces a professional split, with some employees working for an American-led startup-like venture, while others remain part of a global tech giant.
As the January 22 closing date for the divestment deal approaches, this internal split serves as the operational foundation for TikTok’s survival in the United States. It represents a high-stakes compromise: a platform that remains whole to its 170 million users, but is fundamentally fractured behind the scenes to appease the conflicting demands of international commerce and national security.
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