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TikTok's global layoff spree: hundreds of jobs cut as company shifts focus to AI-powered content moderation

The social media application, TikTok, has let go of hundreds of workers around the world. However, a massive chunk of layoffs include a large contingent in Malaysia. On October 11, Tiktok confirmed laying off hundreds of workers, which it claimed is a 'giant leap' toward greater use of artificial intelligence to moderate content.

Sources familiar with the matter say that Malaysia was to experience over 700 layoffs. However, later on, TikTok explained that less than 500 people in the country were affected. “The dismissal emails were sent out to the laid-off employees on Wednesday late at night,” sources said.

Although the company is now facing increased regulatory pressures in Malaysia, TikTok has resolved to automate content moderation. Indeed, the Malaysian government has told social media operators they must acquire an operating license by January to combat cyber offences. The move comes at a sharp rise in harmful social media content reported in the country earlier this year.

After the news broke out, a TikTok spokesperson said in a statement, “We're making these changes as part of our ongoing efforts to further strengthen our global operating model for content moderation.”

The company employs a mix of automated detection and human moderators to review content posted on the site. Now, with this move, TikTok is set to become more efficient and effective, and AI-powered moderation is in place. Already, automated technologies have been able to remove 80% of guideline-violating content.

TikTok's parent company, ByteDance, has over 110,000 employees spread across more than 200 cities. The technology company intends to consolidate regional operations, which will result in more retrenchments next month.

Despite job cuts, TikTok expects to spend $2 billion globally in trust and safety this year, an aspect that would boost their capabilities in content moderation and provide a safer experience for the user.

“This investment in AI-based content moderation aligns with TikTok's response to regulatory matters, ultimately to make its app safer,” said an industry expert.

The slew of layoffs at TikTok comes as regulatory scrutiny there is increasing. Bolstering this increased pressure on companies to make content moderation a priority after the government pushed for operators of social media to secure licenses and up their monitoring. “A new move by TikTok toward AI-driven moderation portrays the willingness of the company to adapt to change in its regulatory requirements,” another analyst said.

As AI technology is transformed, applications and usage in moderation processes continue to change. TikTok's shift towards automation is part of a broader industry trend. AI-based content moderation will become the new standard as more platforms look to build safer environments without sacrificing scalability, according to an industry analyst.

TikTok does something of an annual spring cleaning of sorts-a way of reminding everyone how fast the world of social media moderation is changing regulatory pressures continue to mount on such companies to innovate for a safe experience for its users.