ByteDance Restructures: AI Innovation Triggers Major Layoffs at TikTok's Malaysian Unit

ByteDance, TikTok's parent company, has laid off over 700 employees in Malaysia to focus more on AI for content moderation. This move is part of a global strategy to enhance its operations despite rising regulatory pressures in Malaysia. TikTok plans to invest $2 billion in trust and safety.

ByteDance, the company behind the popular social media platform TikTok, has recently dismissed more than 700 employees from its Malaysian division. This decision comes as the company aims to increase its reliance on artificial intelligence for content moderation, two insiders told Reuters.

Employees, largely involved in moderation, received dismissal notifications via email, according to anonymous sources due to restrictions on media communication. TikTok acknowledged the layoffs but didn't specify the exact number of affected employees in Malaysia. The company foresees a global impact, emphasizing efforts to enhance moderation strategies.

Facing increased regulatory scrutiny in Malaysia, where an operating licence is now mandatory for social media platforms by January, TikTok's layoff follows a reported spike in harmful online content. ByteDance plans to invest $2 billion in trust and safety, leveraging AI, which now handles 80% of content violations.

(With inputs from agencies.)