TikTok lays off hundreds of workers globally as it deploys AI for content moderation 

TikTok, the popular social media platform owned by China’s ByteDance, has announced the layoff of hundreds of employees from its global workforce, including a significant number in Malaysia.

The move is part of the company’s strategy to shift towards greater use of artificial intelligence (AI) in content moderation.

Initial reports suggested that more than 700 jobs were slashed in Malaysia, but TikTok later clarified that fewer than 500 employees were affected.

Most of the employees impacted were involved in the firm’s content moderation operations. Citing sources familiar with the matter, Reuters reported that the affected staff were informed via email late Wednesday.

TikTok confirmed layoffs 

In response to media inquiries, TikTok confirmed the layoffs and explained that several hundred employees globally would be impacted as part of a broader initiative to enhance its content moderation operations.

The company currently employs a combination of automated detection systems and human moderators to review content posted on its platform.

“We’re making these changes as part of our ongoing efforts to further strengthen our global operating model for content moderation,” a TikTok spokesperson said in a statement.  

• The company added that it expects to invest $2 billion globally in trust and safety this year and will continue improving efficiency. Currently, 80% of content that violates platform guidelines is removed by automated technologies.

• While TikTok did not specify the exact number of layoffs globally, ByteDance, the parent company, employs more than 110,000 people across 200 cities worldwide, according to its website.

• Sources indicate that further retrenchments may occur next month as the company consolidates some of its regional operations.

What you should know 

While there have been a series of layoffs by global tech companies since last year, TikTok’s layoffs specifically brought to the fore the concerns about AI leading to the loss of jobs globally.

The Managing Director of the International Monetary Fund (IMF), Kristalina Georgieva, in a recent report, warned that AI would affect almost 40% of jobs around the world, replacing some and complementing others.

“In advanced economies, about 60% of jobs may be impacted by AI. Roughly half the exposed jobs may benefit from AI integration, enhancing productivity.  

“For the other half, AI applications may execute key tasks currently performed by humans, which could lower labor demand, leading to lower wages and reduced hiring. In the most extreme cases, some of these jobs may disappear. 

“In emerging markets and low-income countries, by contrast, AI exposure is expected to be 40% and 26%, respectively,” the IMF boss stated. 

• While noting that automation and information technology have tended to affect routine tasks, she said one of the things that sets AI apart is its ability to impact high-skilled jobs.

• Similarly, a report from Goldman Sachs indicates that AI could replace 300 million jobs globally. It added that the technology could impact two-thirds of jobs in the US and Europe, and one-fourth of the jobs could be performed completely by AI.

• OpenAI and Mckinsey Global Institute also estimate that AI would impact half of the job tasks for 20% of the workers.