ByteDance’s TikTok is laying off approximately 500 employees in Malaysia as part of a global shift towards increased use of AI in content moderation. 

According to Reuters, the social media platform confirmed the job cuts, stating that the restructuring would impact several hundred employees worldwide.

The majority of the affected staff in Malaysia were involved in content moderation operations. According to sources familiar with the matter, employees were notified of their dismissal via email on October 9.

TikTok reviews content on its platform using a combination of automated detection and human moderators. The company reports that 80% of content violating its guidelines is now removed by automated technologies.

Despite the layoffs, TikTok plans to invest $2 billion globally in trust and safety initiatives this year. A company spokesperson stated that the changes are part of ongoing efforts to strengthen TikTok’s global operating model for content moderation.

The job cuts come as technology firms face increased regulatory pressure in Malaysia. 

The Malaysian government has requested social media operators to apply for operating licenses by January 2025 to combat cyber offenses. 

Earlier this year, Malaysia reported a significant increase in harmful social media content and urged companies, including TikTok, to enhance monitoring on their platforms.

In response, the Malaysian Communications and Multimedia Commission introduced measures to combat rising cyber offenses. Social media and internet messaging services must comply with Malaysian laws focused on fighting scams, cyberbullying, and sexual crimes or face legal action.

Earlier this month, reports emerged that ByteDance plans to use Huawei chips to develop a new AI model as China intensifies efforts to reduce dependence on U.S. technology amid tightening export controls. The company allegedly ordered over 100,000 Huawei chips but received fewer than 30,000 in July.