ByteDance may not allow all American TikTok employees to join the newly proposed US-based entity. Instead, the social media company is reportedly planning to split its US employees between two different corporate units. A report citing the company’s internal memos claimed that a portion of TikTok’s US workforce will join a new joint venture called TikTok USDS Joint Venture LLC. Meanwhile, others will remain under a global entity owned by ByteDance, TT Commerce & Global Services LLC.According to a Business Insider report, staff assignments will be determined as per specific job roles and their relationship to the platform’s global infrastructure. Employees focused on data protection and algorithm security are expected to be designated for the USDS Joint Venture, which will be led by investors including Oracle, Silver Lake, and MGX. On the other hand, staff members working on commercial activities such as e-commerce, advertising, and marketing are expected to remain with the global entity, as these products remain tied to TikTok’s international operations.This transition, which is reportedly scheduled to conclude by January 22, is a part of ByteDance’s broader effort to separate US operations from the parent company. TikTok CEO Shou Chew also reportedly informed staff that this structure will allow for the continuation of global commercial services while placing sensitive security functions under the oversight of the new US-led venture.
Why TikTok may be planning to split up its US workforce
If the TikTok deal happens, Oracle, MGX, and Silver Lake would each own 15% of the new US joint venture. Companies connected to current ByteDance investors would get around 30%. While 5% of the company would go to a group of new investors yet to be named. Finally, ByteDance would retain just under 20% to comply with US ownership rules that forced the sale.The law, called the Protecting Americans from Foreign Adversary Controlled Applications Act, requires companies based in countries the US considers foreign adversaries to sell their American operations or pay hefty fines. In this law, Congress specifically mentioned TikTok and China-based ByteDance. TikTok tried to fight the law in court but lost when the Supreme Court ruled against the company in January 2024.Last year, US President Donald Trump allowed the app to keep operating through executive orders while his administration worked with TikTok and potential buyers on a deal. In September 2025, the White House announced that an agreement had been reached with ByteDance. US Vice President JD Vance said the deal would value TikTok’s US operations at around $14 billion.
