TikTok Reportedly Lays Off ‘Hundreds’ of Malaysia-Based Content Moderators Following ‘AI Hub’ Announcement

Kuala Lumpur, Malaysia, where TikTok layoffs are reportedly affecting hundreds of content-moderation employees. Photo Credit: Esmonde Yong

TikTok is reportedly laying off hundreds of employees, among them a large number of content moderators, with additional personnel cutbacks forthcoming.The ByteDance-owned app’s latest staff reduction entered the media spotlight in reports this morning, though TikTok may have set the layoffs in motion months ago. Running with Reuters’ indication that most of the “hundreds” of axed team members are based in Malaysia and handled content moderation, multiple relevant individuals have changed their LinkedIn employment status.

Some of the changes are decidedly recent, and others date back to at least May of 2024. That said, all these changes fall squarely under the content-moderation banner, and affected professionals’ titles include content analyst, content safety labeler, and creator community operation specialist, to name just a few.

Building on the idea that TikTok’s Malaysia layoffs were perhaps underway prior to today’s coverage, AI is reportedly poised to assume the content-related duties in question. And June had seen ByteDance announce plans to drop a whopping $2.1 billion on an “AI Hub” in Malaysia, population 34 million.

As to the layoffs’ precise extent and possible industry impact, TikTok has confirmed less than 500 eliminated positions specifically in Malaysia, whereas anonymous sources have pointed to approximately 700 layoffs in the nation.In any event, the news doesn’t appear to have directly affected the music operations of TikTok. However, the platform is in the process of axing its standalone streaming service, TikTok Music, and further layoffs are reportedly being teed up for next month.

While time will reveal the precise extent of the cuts – reports in May of 2024 touched on sizable marketing and operations layoffs at TikTok, it’s worth reiterating – the controversial-but-popular app is also grappling with a growing list of stateside hurdles.

Most conspicuously, those operational obstacles include the quick-approaching January deadline to sell or shut down TikTok in the States. But earlier this week, a number of states and D.C. sued the video-sharing giant over its allegedly harmful effects on children.

Then there’s the imminent expiration of the service’s Merlin deal, which will conclude on October 31st. The indie collective’s member labels are free to hammer out direct deals with TikTok, but reports are relaying that the offered terms have in several instances proven far from ideal. In a nutshell, that means a lot of music could be exiting the app by October’s end.