logo
TikTok cuts more workers from US e-commerce division

TikTok cuts more workers from US e-commerce division

Business Times18 hours ago
[TAIPEI] TikTok is cutting more workers from its US e-commerce division, TikTok Shop, the third round of layoffs for that team since April.
'As the TikTok Shop business evolves, we regularly review our operations to ensure long-term success,' a spokesperson for the video-sharing app said on Wednesday (Jul 2). 'We have made the difficult decision to adjust parts of our team to better align with strategic priorities.'
TikTok did not respond to the question of how many people are being cut.
TikTok Shop's US operations have undergone a series of changes in the past few months following a year in which the division fell short of internal sales targets. TikTok Shop eliminated some jobs in April and enacted a second round of cuts in May, Bloomberg previously reported.
The team has also been replacing US-hired staff near Seattle with managers connected to China – an effort to replicate the e-commerce success that parent company ByteDance has had in Asia.
Despite the changes, TikTok Shop has been the social media app's fastest-growing business, and a major focus for ByteDance globally. Last year, TikTok Shop opened in five new countries in Europe, including Germany and Spain.
TikTok's US future remains in limbo as the company faces a potential ban over national security concerns. Under a US law passed in 2024, Beijing-based ByteDance is required to divest TikTok to avoid being banned in the country.
US President Donald Trump, who has extended the deadline for a divestment to mid-September, has said he has a buyer lined up for the app, and just needs approval from the Chinese government for the sale. BLOOMBERG
Orange background

Try Our AI Features

Explore what Daily8 AI can do for you:

Comments

No comments yet...

Related Articles

China's foreign minister dismisses European worries over rare earths
China's foreign minister dismisses European worries over rare earths

Straits Times

time18 minutes ago

  • Straits Times

China's foreign minister dismisses European worries over rare earths

Sign up now: Get ST's newsletters delivered to your inbox BERLIN - China's foreign minister downplayed European worries over rare earth exports restrictions on Thursday, saying it was standard practise to control dual-use goods exports but that Europe's needs could be met if applications were submitted. Wang Yi was speaking in Berlin during a joint news conference with his German counterpart, on the second leg of a European tour seeking to lay the groundwork for a summit between EU and Chinese leaders later this month. "Rare earths have not been, are not, and will not be a problem between China and Europe, or between China and Germany," Wang said. "If legal applications are submitted, Europe's and Germany's normal needs can be met." China, which controls over 90% of global processing capacity for rare earths used in everything from automobiles to home appliances, had imposed restrictions in early April requiring exporters to obtain licenses from Beijing. German Foreign Minister Johann Wadephul said the restrictions were causing "great concern" and tarnishing China's image in Germany as a reliable trade partner. "We are on the path to finding sustainable joint solutions that will bring the necessary detente," he said. But when Wang was asked if an agreement could be reached on restrictions ahead of the EU-China summit, he said: "This is not an issue between China and Europe... controlling dual-use goods is standard practice. China and Germany both have the right to do so." Top stories Swipe. Select. Stay informed. Singapore Seller's stamp duty rates for private homes raised; holding period increased from 3 years to 4 Singapore 193ha of land off Changi to be reclaimed for aviation park; area reduced to save seagrass meadow Business More Singapore residents met CPF Required Retirement Sum when they turned 55 in 2024 Singapore PAP questions Pritam's interview with Malaysian podcast, WP says PAP opposing for the sake of opposing Sport 'Pedal to the metal' for next 2 years, says Singaporean powerlifter Farhanna Farid Singapore 1 in 4 appeals to waive HDB wait-out period for private home owners approved since Sept 2022 Sport A true fans' player – Liverpool supporters in Singapore pay tribute to late Diogo Jota Singapore Healthcare facility planned for site of Ang Mo Kio Public Library after it moves to AMK Hub The Chinese Ministry of Commerce already has a fast-track procedure in place to ensure that normal approvals are processed as quickly as possible, he added. Wang came to Berlin from Brussels, where he met with EU officials including the bloc's high representative for foreign policy Kaja Kallas, who also urged Wang to end rare earth export restrictions. Wadephul said the two foreign ministers also discussed Russia's invasion of Ukraine, Taiwan and the crisis in the Middle East. "We believe China can play a constructive role in relation to Iran," he said. REUTERS

US trade deficit widens in May as Trump tariffs fuel uncertainty
US trade deficit widens in May as Trump tariffs fuel uncertainty

CNA

timean hour ago

  • CNA

US trade deficit widens in May as Trump tariffs fuel uncertainty

WASHINGTON: The US trade deficit widened more than expected in May, with both imports and exports declining as US President Donald Trump's tariffs sent shock waves through the economy and snagged supply chains. Trade data published Thursday (Jul 3) showed the world's biggest economy logged an overall trade gap of US$71.5 billion, in the month after Trump imposed a 10 per cent duty on most trading partners before pausing steeper rates for dozens of these economies. This was an expansion from the US$60.3 billion deficit in April, according to the Commerce Department. The figures, however, came as both imports and exports shrank in May. US imports were down 0.1 per cent to US$350.5 billion, as incoming shipments of goods ticked down. Imports of consumer goods dropped by US$4.0 billion, with those of certain apparel and toys both sliding, although imports of autos and parts climbed. US exports, meanwhile, dropped by 4.0 per cent to US$279.0 billion, with declines largely seen in industrial supplies and materials, the report showed. US trade has been rocked by Trump's sweeping tariff announcements since the start of this year, as companies stocked up to get ahead of expected levies and halted shipments to wait for high duties to come down. This was the case when Trump doubled down on tariffs impacting goods from China in April. Tit-for-tat tariffs on both sides surged to prohibitive levels before Washington and Beijing de-escalated tensions in mid-May. Trade is "at risk of introducing more volatility in the data," said Bernard Yaros, lead US economist at Oxford Economics. This is especially as the world heads towards a Jul 9 deadline when Trump's pause on higher duties for dozens of economies including the European Union, Japan and South Korea is due to expire. "A worst-case tariff outcome this month would apply further downward pressure on imports," Yaros warned. The path forward is unclear and he expects levels to land somewhere between their current position and the steep levels initially unveiled in April. He cited a US deal with Vietnam announced Wednesday where the country averted the harsh tariff rate Trump first announced. But Yaros maintains that "the true health of the economy will be better distilled by the consumer and business spending figures, which are showing signs of weakness." Carl Weinberg, chief economist at High Frequency Economics, expects Federal Reserve policymakers to look past the fluctuations in inventories as they decide on further interest rate adjustments. "There is not much in this report to alter the Fed's view that the economy remains strong," he said.

Nvidia set to become world's most valuable company in history
Nvidia set to become world's most valuable company in history

Business Times

time3 hours ago

  • Business Times

Nvidia set to become world's most valuable company in history

[OAKLAND, CALIFORNIA] Nvidia was on track to become the most valuable company in history on Thursday (Jul 3), with the chipmaker's market capitalisation reaching US$3.92 trillion as Wall Street doubled down on optimism about AI. Shares of the leading designer of high-end AI chips were up 2.2 per cent at US$160.6 in morning trading, giving the company a higher market capitalisation than Apple's record closing value of US$3.915 trillion on Dec 26, 2024. Nvidia's newest chips have made gains in training the largest artificial-intelligence models, fuelling demand for products by the Santa Clara, California, company. Microsoft is currently the second-most valuable company on Wall Street, with a market capitalisation of US$3.7 trillion as its shares rose 1.5 per cent to US$498.5. Apple rose 0.8 per cent, giving it a market value of US$3.19 trillion, in third place. A race among Microsoft, Meta Platforms, Alphabet and Tesla to build AI data centres and dominate the emerging technology has fuelled insatiable demand for Nvidia's high-end processors. 'When the first company crossed a trillion US dollars, it was amazing. And now you're talking four trillion, which is just incredible. It tells you that there's this huge rush with AI spending and everybody's chasing it right now,' said Joe Saluzzi, co-manager of trading at Themis Trading. The stock market value of Nvidia, whose core technology was developed to power video games, has increased nearly eight-fold over the past four years, from US$500 billion in 2021. BT in your inbox Start and end each day with the latest news stories and analyses delivered straight to your inbox. Sign Up Sign Up Nvidia is now worth more than the combined value of the Canadian and Mexican stock markets, according to LSEG data. The tech company also exceeds the total value of all publicly listed companies in the United Kingdom. Nvidia recently traded at about 32 times analysts' expected earnings for the next 12 months, below its average of about 41 over the past five years, according to LSEG data. That relatively modest price-to-earnings valuation reflects steadily increasing earnings estimates that have outpaced Nvidia's sizable stock gains. The company's stock has now rebounded more than 68 per cent from its recent closing low on Apr 4, when Wall Street was reeling from President Donald Trump's global tariff announcements. US stocks, including Nvidia, have recovered on expectations that the White House will cement trade deals to soften Trump's tariffs. Nvidia holds a weight of nearly 7.4 per cent on the benchmark S&P 500 . AI poster child Nvidia's swelling market capitalisation underscores Wall Street's big bets on the proliferation of generative AI technology, with the chipmaker's hardware serving as the foundation. Co-founded in 1993 by CEO Jensen Huang, Nvidia has evolved from a niche company popular among video game enthusiasts into Wall Street's barometre for the AI industry. The stock's recent rally comes after a slow first half of the year, when investor optimism about AI took a back seat to worries about tariffs and Trump's trade dispute with Beijing. Chinese startup DeepSeek in January triggered a sell-off in global equities markets with a cut-price AI model that outperformed many Western competitors and sparked speculation that companies might spend less on high-end processors. In November of last year, Nvidia took over the spot on the Dow Jones Industrial Average formerly occupied by chipmaker Intel, reflecting a major shift in the semiconductor industry towards AI-linked development and the graphics processing hardware pioneered by Nvidia. REUTERS

DOWNLOAD THE APP

Get Started Now: Download the App

Ready to dive into a world of global content with local flavor? Download Daily8 app today from your preferred app store and start exploring.
app-storeplay-store