TikTok and ByteDance are implementing major organizational changes to their global e-commerce operations, with a strategic focus on centralizing artificial intelligence capabilities and improving operational efficiency. Following a successful Black Friday week that generated over $500 million in US sales during the four-day Black Friday to Cyber Monday period, the company restructured its global e-commerce product, design, and data science teams in early December 2024.
Zhou Sheng, the global e-commerce product and design team leader, is stepping aside after helping build the company’s e-commerce product infrastructure and facilitating its global expansion. According to a December memo from ByteDance e-commerce head Bob Kang, regional e-commerce product and user growth managers will now report to Chen Songlin, a ByteDance executive with experience working on Douyin, TikTok’s Chinese sister app.
The restructuring also affects TikTok Shop’s global e-commerce data science team, with managers now reporting to executive Zhang Heng. This change aims to centralize the group’s measurement and AI strategies, reflecting the company’s increased emphasis on artificial intelligence across its e-commerce operations. According to company staffers, AI has been a major focus at TikTok Shop throughout 2024, with virtually every team working on AI-related projects to varying degrees. These initiatives include both customer-facing applications and internal efficiency improvements.
The reorganization comes after a turbulent year for TikTok Shop, which has undergone multiple restructurings and job cuts as it works to establish its e-commerce presence in key markets, particularly the United States. In April 2024, the company cut workers from its governance and experience team, shifting more authority to staff based in Singapore and China. US-based TikTok Shop employees have faced performance pressure after global leadership expressed disappointment with 2024 results.
Despite challenges including political ban threats and rising tariff-related import costs, TikTok Shop’s prospects appear to be improving. The platform, which officially launched in the US in late 2023, has recently attracted major household brands including Disney, Ralph Lauren, and Samsung. Ban concerns have diminished as the Trump administration has repeatedly delayed enforcement of legislation requiring ByteDance to sell its US operations. In September 2024, the administration approved a $14 billion sale deal potentially involving Oracle, Larry Ellison, Michael Dell, and Rupert Murdoch.
Key Quotes
Pretty much every team is working on it to some degree
An anonymous TikTok employee described the pervasive focus on AI across TikTok Shop teams in 2024, indicating that artificial intelligence has become a central priority throughout the organization’s e-commerce operations.
Zhou helped build the company’s e-commerce product and ‘greatly facilitated’ its global development
ByteDance e-commerce head Bob Kang acknowledged Zhou Sheng’s contributions in his December memo announcing the restructuring, highlighting the executive’s role in establishing TikTok’s e-commerce infrastructure before the AI-focused reorganization.
Our Take
TikTok’s decision to centralize AI strategy within its e-commerce division represents a maturation of social commerce that goes beyond viral product trends. By consolidating data science and AI capabilities under unified leadership, ByteDance is essentially building an AI-first e-commerce platform that can leverage TikTok’s massive engagement data for commercial purposes. This approach could give TikTok Shop significant advantages in personalization and conversion optimization compared to traditional e-commerce platforms. The restructuring also suggests that AI efficiency gains are becoming critical for profitability in social commerce, where margins can be thin and operational complexity is high. The timing—immediately after a successful Black Friday—indicates confidence that AI investments will drive the next phase of growth. However, the ongoing leadership changes and job cuts reveal the challenges of scaling AI-powered commerce globally while navigating geopolitical pressures.
Why This Matters
This restructuring signals TikTok’s strategic commitment to AI-powered e-commerce at a critical growth phase for the platform. By centralizing AI and data science capabilities under unified leadership, ByteDance is positioning TikTok Shop to compete more effectively against established e-commerce giants like Amazon and emerging social commerce platforms. The move reflects a broader industry trend where AI is becoming essential infrastructure for e-commerce operations, from personalized recommendations and dynamic pricing to inventory management and customer service automation.
The timing is particularly significant given TikTok Shop’s $500 million Black Friday performance, demonstrating that the platform is gaining traction with US consumers despite ongoing political uncertainties. The emphasis on AI across “pretty much every team” suggests ByteDance recognizes that AI differentiation will be crucial for competing in the crowded e-commerce space. This centralized AI approach could accelerate innovation in areas like creator-driven commerce, live shopping experiences, and algorithmic product discovery—all areas where TikTok’s recommendation engine already excels. For the broader AI industry, this represents another major tech company doubling down on AI as core business infrastructure rather than experimental technology.
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