ByteDance-owned social media platform TikTok is laying off hundreds of staff globally, with a significant portion of the cuts affecting its Malaysian workforce, as the company shifts towards greater artificial intelligence use in content moderation.

The company confirmed on Friday that less than 500 employees in Malaysia were impacted by the restructuring, clarifying earlier reports that suggested over 700 job losses in the country. The affected staff, primarily involved in content moderation, received dismissal notices via email on Wednesday evening.

"We're making these changes as part of our ongoing efforts to further strengthen our global operating model for content moderation," a TikTok spokesperson said in a statement. The company added that it plans to invest $2 billion globally in trust and safety this year, with automated technologies now removing 80 per cent of content that violates guidelines.

The restructuring comes as ByteDance, which employs more than 110,000 people across 200 cities worldwide, faces increasing regulatory scrutiny in Malaysia. The Malaysian government has mandated social media operators to obtain operating licences by January 2025 as part of broader efforts to combat cyber offences.

Sources familiar with the matter, speaking on condition of anonymity to Reuters, indicated that ByteDance is planning additional staff reductions next month as it consolidates regional operations. The move reflects a broader industry trend towards automated content moderation systems.

The layoffs coincide with heightened pressure from Malaysian authorities, who reported a significant rise in harmful social media content earlier this year. The government has urged platforms, including TikTok, to enhance their content monitoring capabilities.

TikTok currently uses a combination of automated detection systems and human moderators to review content posted on its platform, but the recent cuts suggest a strategic shift towards increased reliance on AI-powered moderation tools.

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