New CEO Liang Rubo will take on the role of chairman, the person added.
ByteDance did not immediately respond to a request to comment.
On Tuesday, Liang announced a major organisational reshuffle at ByteDance by creating six business units: TikTok and its Chinese version Douyin, work collaboration unit Lark, business services unit BytePlus, gaming unit Nuverse, and education tech unit Dali Education.
Liang also said TikTok CEO Shou Zi Chew will step down as its parent ByteDance's chief financial officer (CFO) to focus on running the short video platform full time.
Chew joined ByteDance as CFO in March and was appointed as TikTok CEO in May.