TikTok told US e-commerce staff to work from home Wednesday while awaiting emails regarding “difficult decisions,” suggesting the social media company is preparing to cut jobs.

The Chinese-owned company is considering ways to “create a more efficient operating model,” Mu Qing, who took over TikTok Shop in the US last month, said in an internal memo reviewed by Bloomberg News. He told workers to expect “operational and personnel changes to the e-commerce US operation center and global key accounts teams beginning early on Wednesday.”

The potential layoffs follow leadership changes last month that included Mu, a former executive with the ...