TikTok is restructuring its U.S. operations by splitting its American workforce into two separate entities in preparation for a sale mandated by U.S. law aimed at addressing national security concerns. Under the plan, staff focused on data protection and algorithm security will move to a newly created TikTok USDS Joint Venture LLC, which will be controlled in part by U.S. investors, while employees in advertising, e-commerce, and marketing will remain under a global entity called TT Commerce & Global Services LLC.

The restructuring reflects efforts to comply with the Protecting Americans from Foreign Adversary Controlled Applications Act, which requires TikTok’s China-based parent, ByteDance, to divest its U.S. operations or face potential bans. The sale has attracted major partners, with U.S. tech and investment firms such as Oracle, Silver Lake, and MGX each set to take around 15% ownership of the new joint venture, and other stakeholders holding significant portions, while ByteDance will retain a smaller share.

This strategic shift is part of a broader effort to placate U.S. regulators and keep the platform operating in the U.S. market. A sale valued at approximately US $14 billion is expected to close in January 2026, allowing TikTok to continue serving its large U.S. user base while placing key elements like data security under U.S.-aligned ownership and governance.