TikTok has begun splitting its U.S.-based workforce into separate corporate entities as it prepares for a potential sale of its American operations, a move that highlights how its Chinese parent company, ByteDance, is positioning itself to retain control over key global business lines even if a deal is completed.
According to an internal memo, some U.S. employees have been informed that they will not transition into the new U.S.-focused joint venture, known as TikTok USDS Joint Venture LLC. Instead, they will be moved into a newly created global entity, TT Commerce & Global Services LLC, which will remain under ByteDance’s ownership. This group includes staff working on commercial activities such as e-commerce, advertising, and marketing, which TikTok CEO Shou Chew previously said would continue to operate as part of TikTok’s global business.
Other U.S. employees, particularly those involved in data protection, trust and safety, and algorithm security, are expected to be transferred to the USDS joint venture. That entity is being led by managing investors Oracle, Silver Lake, and Abu Dhabi-backed MGX, and is designed to satisfy U.S. national security concerns around data access and foreign ownership.
If finalized, the ownership structure would see Oracle, Silver Lake, and MGX each holding 15% stakes, affiliates of existing ByteDance investors owning around 30%, and a small group of new investors taking 5%. ByteDance would retain just under 20%, aligning with the requirements of U.S. divestment rules while still preserving significant influence over TikTok’s broader ecosystem.
The restructuring is tied directly to the Protecting Americans from Foreign Adversary Controlled Applications Act, a law passed by Congress that compels companies deemed controlled by foreign adversaries to divest U.S. assets or face fines and potential bans. The legislation explicitly references TikTok and ByteDance. While TikTok challenged the law, the U.S. Supreme Court rejected the appeal in January 2025, clearing the way for enforcement.
President Donald Trump has so far allowed TikTok to continue operating through a series of executive orders, while his administration negotiates a long-term solution with investors. In September, the White House confirmed that a framework deal had been reached, with Vice President JD Vance estimating TikTok U.S. could be valued at about US$14 billion.
Analysts say the staff split underscores ByteDance’s strategy to protect its most lucrative global businesses, particularly e-commerce, while conceding operational control over sensitive areas to U.S. partners. However, uncertainty remains over regulatory approvals, political pressure, and whether the deal can close as planned.
TikTok and ByteDance declined to comment publicly on the staffing changes.
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