Amid the wave of global AI investments, China’s TikTok has confirmed the layoff of employees from its Malaysia division. According to a report by Reuters, over 700 employees have been laid off as the company pivots to increased use of AI for content moderation.

The information was first revealed by local media the Malaysian Reserve last Thursday, as the report notes that over 500 individuals were let go after receiving emails from the company. Most of the workers, according to the report, are said to be involved in content moderation on the platform.

The job cuts come as global tech companies are facing growing regulatory pressure in Malaysia, where the government mandates social media operators to apply for an operating license to combat cyber offenses.

According to a previous report by the South China Morning Post, social media and internet messaging platforms with over 8 million users in Malaysia must obtain a license by New Year’s Eve next year or face penalties under current cyber laws.

It is worth noting that more layoffs might be on the way, according to Reuters. Citing sources familiar with the situation, Reuters suggests that the Chinese tech giant is planning further layoffs next month as it aims to streamline some of its regional operations.

In response to inquiries from Reuters, TikTok confirmed the layoffs last Friday, but refused to provide an exact number of employees affected in Malaysia. According to a TikTok statement cited by Reuters, the company is implementing these changes as part of its ongoing efforts to enhance the global operating model for content moderation.

TikTok utilizes a combination of automated detection and human moderators to review the content posted on its platform, Reuters notes.

Furthermore, the Chinese tech giant reportedly plans to invest USD 2 billion in trust and safety this year and will continue to focus on improving efficiency, noting that 80% of content that violates guidelines is now removed by automated technologies, according to Reuters.

According to the company’s website, ByteDance, TikTok’s parent company, has over 150,000 employees based out of nearly 120 cities worldwide.

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(Photo credit: TikTok)