TikTok, owned by ByteDance, is reportedly laying off hundreds of employees, with significant reductions in Malaysia. This move aligns with the company’s strategy to enhance AI-based content moderation.

What Happened: Sources cited by Reuters initially reported over 700 job cuts in Malaysia, but TikTok later clarified that fewer than 500 employees were affected, according to a report by CNA.

The layoffs primarily targeted content moderation staff, who were informed via email on Wednesday.

TikTok confirmed the global job cuts, affecting several hundred employees as the company seeks to optimize its moderation processes, the report added. The company employs both automated systems and human moderators to oversee content.

See Also: Internet Archive Hit By Major Security Breach And DDOS Attack: 31 Million Accounts Compromised

ByteDance, with a workforce exceeding 110,000 across more than 200 cities, plans further layoffs next month to streamline regional operations, according to Reuters. TikTok aims to invest $2 billion globally in trust and safety, with 80% of guideline-violating content now removed by AI.

The layoffs coincide with increased regulatory scrutiny in Malaysia, where the government requires social media platforms to obtain operating licenses by January to address cybercrime concerns.

Why It Matters: The layoffs at TikTok are part of a broader trend of restructuring within the company. Earlier this year, TikTok faced pressure due to U.S. legislation, as President Joe Biden introduced a law that could force TikTok to divest its U.S. operations or face a ban.

This led to reports of planned layoffs in operations, content, and marketing departments.

Additionally, TikTok recently underwent a significant leadership overhaul, with the resignation of its global marketing chief, Kate Jhaveri. This change was part of a strategy to consolidate the global brand and communications division under a single leader, Zenia Mucha.

Meta Platforms Inc. co-founder and CEO Mark Zuckerberg believes AI could automate some jobs but also create new opportunities, allowing people to focus on their passions and boost productivity. However, the timeline for significant changes remains uncertain.

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Disclaimer: This content was partially produced with the help of AI tools and was reviewed and published by Benzinga editors.

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