ByteDance, the Chinese tech giant behind TikTok, is on track for a record-breaking year despite the looming threat of a US ban. The company’s net profit surged 6% to $33 billion in 2024. This growth is largely thanks to TikTok’s massive success outside China, particularly in the US and Europe.
TikTok’s revenue jumped 63% to $39 billion in 2024, making it a crucial driver of ByteDance’s overall performance. The app’s global reach has been a key factor in the company’s success. In fact, TikTok’s revenue accounted for around a quarter of ByteDance’s total earnings.
The US remains a critical market for TikTok, but the app’s future there is uncertain. President Donald Trump recently extended the deadline for ByteDance to sell TikTok to a US company by 75 days. The sale is required due to national security concerns. ByteDance is in talks with US authorities to avoid a ban, but some issues remain unresolved.
TikTok’s E-commerce Shakeup
While navigating the potential US ban, TikTok is undergoing significant changes to its e-commerce division in the US. The company has laid off staff from its global governance and experience team, which oversees product listings, seller compliance, and intellectual property protection for TikTok Shop. The exact number of layoffs is unclear. However, sources say it’s part of a broader restructuring effort driven by performance reviews and growing scrutiny of the unit’s performance.
Several top TikTok executives have left the company in recent months, including Blake Chandlee, Lucy Banks, Ole Obermann, Emily Stubbs, Jack Bambergery, and Sameer Singh. Their departures come at a sensitive time for TikTok, as the company faces pressure to find a US buyer. The situation is complicated by rising tensions between the US and China, as well as new US tariffs on Chinese products.
ByteDance’s situation is complex, with the company caught between the US government’s concerns and its own business interests. The outcome will have significant implications for TikTok’s future.