Facing Pressure from Multiple Countries, TikTok Announces Global Layoffs of Hundreds of Employees

On Friday, October 11th, ByteDance, a Chinese company, announced that its popular short video platform TikTok, is cutting hundreds of jobs globally, including a significant number of employees in Malaysia. The reason behind this decision is the company’s shift towards using more artificial intelligence (AI) technology for content moderation.

According to Reuters, two sources familiar with the matter revealed that TikTok has eliminated over 700 positions in Malaysia. However, TikTok later clarified that the actual number of affected Malaysian employees is less than 500.

On Wednesday evening, most of the employees responsible for content moderation were informed of the layoffs via email. The sources mentioned that they were not authorized to speak to the media and requested to remain anonymous.

This mass layoff by TikTok comes at a time when Malaysia is tightening its regulations on global tech companies. As part of the efforts to combat cybercrime, the Malaysian government requires social media operators to apply for operating licenses by January next year.

In response to a request for comment from Reuters, TikTok stated that the job cuts are part of a broader plan to improve its content moderation operations, affecting hundreds of employees worldwide.

According to ByteDance’s official website, the company has over 110,000 employees in more than 200 cities globally. TikTok employs a combination of automated detection and manual review to monitor content on its platform.

One of the sources mentioned that the tech company is also planning further layoffs next month to streamline regional operations.

A TikTok spokesperson stated in a release, “We are making these changes as part of further strengthening our global content management framework.”

The spokesperson noted that currently, 80% of the violating content is being removed through automated technology.

Earlier this year, reports from Malaysia showed a sharp rise in harmful content on social media platforms, urging companies like TikTok to enhance their platform moderation practices.

TikTok is facing regulatory pressures from multiple countries worldwide. This week, TikTok was sued by 13 U.S. states and the District of Columbia, alleging that the platform harms the mental health of young users and collects their personal data without consent. These states also accused TikTok’s algorithm of being addictive and causing youth to become engrossed in the platform.

On April 24th, President Joe Biden signed a law requiring TikTok to separate from its Chinese parent company, ByteDance, within a year, or face a ban on app downloads in the U.S. TikTok has opposed this decision and is seeking legal defense in court.