Short video giant TikTok has confirmed the layoff of employees in Malaysia, marking a new chapter in the company’s global workforce reduction.
The layoffs, which reportedly affect hundreds of workers, come just months after the company announced its ambitious plans to make Malaysia a regional hub for artificial intelligence (AI).
Content Moderation Takes a Hit
In a statement, a TikTok spokesperson said the layoffs align with their efforts to improve content moderation, reiterating the growing role of automated technologies in safeguarding the platform.
“We expect to invest US$2 billion globally in trust and safety in 2024 alone,” said the spokesperson.
The company’s push for automation has seen 80% of harmful content removed by AI, reducing the need for manual intervention.
Despite this, the human element remains crucial, especially in Malaysia, where most of the affected employees were engaged in content moderation roles.
According to sources, over 500 individuals in Malaysia received termination emails, intensifying the impact of the global cuts.
Global Restructuring Amid Regional Expansion
The news follows earlier reports from May when CNN revealed TikTok’s plans to trim its global operations and marketing workforce.
By June, Bloomberg reported ByteDance had laid off 450 employees in Indonesia after integrating a local e-commerce firm into its operations.
These actions underscore a broader strategy to streamline the company’s operations worldwide while bolstering its AI investments.
Future-Focused but at What Cost?
Ironically, the layoffs come at a time when ByteDance is ramping up its commitment to Malaysia.
The company’s recent announcement to invest RM10 billion in the country aims to position Malaysia as a strategic hub for AI innovation in Southeast Asia.
Yet, the timing of these layoffs raises questions about how TikTok plans to reconcile cost-cutting measures with the promised future growth and investment.
