ByteDance, the China-based parent company of TikTok, has reduced its workforce by more than 700 in Malaysia, pivoting towards enhanced artificial intelligence (AI) for content moderation, reports Reuters.
The affected employees, predominantly content moderators, were notified via email on 9 October 2024, according to sources.
Go deeper with GlobalData
TikTok confirmed the layoffs but did not disclose the exact number of employees affected in Malaysia.
The move is part of a broader strategy to optimise content moderation operations.
TikTok utilises a combination of AI and human oversight to monitor content on the platform.
ByteDance, with a workforce exceeding 110,000 across over 200 cities globally, is expected to undertake additional retrenchments next month as it aims to streamline regional operations.
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By GlobalDataA TikTok spokesperson stated: “We are making these changes as part of our ongoing efforts to further strengthen our global operating model for content moderation.”
The company plans to invest $2bn (14.14bn yuan) in trust and safety this year, aiming to increase the efficiency of content moderation, the representative said, adding that now, 80% of guideline-violating content are being taken down through automated technologies.
The layoffs come at a time when tech companies are under increased regulatory scrutiny in Malaysia.
The government has mandated social media companies to secure an operating licence by January to help combat cyber offences.
Malaysia has recently seen a surge in harmful social media content and has called on platforms like TikTok to enhance their monitoring capabilities.
Separately, ByteDance is reportedly raising up to $600m for its automotive platform Dongchedi.
Key investors include General Atlantic, HongShan, KKR & Co., and Gaorong Ventures.
Dongchedi, which began as the automobile channel of TouTiao and launched its app in 2017, provides automotive information, reviews, quotes, and other services to users.
