Why TikTok layoffs the most employees in Malaysia

In 2024, TikTok’s parent company ByteDance made headlines by announcing significant layoffs in Malaysia, impacting over 700 employees. This decision, primarily attributed to ByteDance’s increased focus on artificial intelligence (AI) and automation, signals a strategic shift toward reducing reliance on human-operated content moderation in favor of more advanced technology.

As TikTok continues to grow and face global regulatory pressures, the company is restructuring its workforce to streamline operations, manage costs, and enhance efficiency across its content moderation and safety processes. The move, which resulted in why Malaysia faced the most employee layoffs by TikTok, raises questions about the future of AI in social media and the impact of automation on global workforces, especially in regions where TikTok has maintained a strong operational presence.

The layoffs of TikTok employees in Malaysia in 2024 largely stem from ByteDance’s shift towards greater automation and a stronger focus on artificial intelligence (AI) to streamline operations. There are several specific reasons why Malaysia, in particular, was affected the most:

1. Focus on AI-Driven Content Moderation
   TikTok has been investing heavily in AI-driven content moderation tools, aiming to reduce reliance on human moderators by increasing the accuracy and efficiency of automated systems. Malaysia was one of the key hubs for TikTok’s content moderation, so as the company shifted toward AI, this led to downsizing of human moderators in regions where content review had been primarily handled by manual teams. It is understandable why TikTok’s layoffs hit Malaysia the hardest.
2. Operational Cost Efficiency
   By automating parts of the content moderation process, TikTok is looking to cut operational costs. While Malaysia is known for cost-effective labor, automating these processes helps the company save even more by reducing human resources expenses. This focus on efficiency allows TikTok to streamline its operations in Malaysia, where the workforce was larger and primarily involved in moderation and customer support functions. Check more news about TikTok…
3. Centralization of Global Operations
   TikTok is centralizing its content moderation efforts, which may mean consolidating resources into fewer locations or even moving certain operations back to ByteDance’s primary offices in China. This centralization could reduce redundancies across international teams, including those in Malaysia, explaining why TikTok’s employees in Malaysia were laid off in large numbers.
4. Restructuring to Support AI Development and Deployment
   The layoffs are part of ByteDance’s strategy to restructure operations to allocate more resources toward AI development. By cutting roles that are increasingly covered by technology, TikTok can redirect investments toward AI research and other high-priority tech projects. Malaysia’s workforce, heavily engaged in manual content management, was significantly impacted by this shift, making clear why TikTok made the largest layoffs in Malaysia.
5. Increased Safety and Compliance Standards
   As TikTok faces regulatory scrutiny globally, it is pushing to meet stricter compliance and safety standards. Automated moderation is seen as more consistent and scalable, making it preferable for meeting these standards efficiently. By investing in automation, TikTok aims to build a moderation system that aligns more seamlessly with international regulatory requirements, further reducing the need for human involvement in regions like Malaysia, another reason why TikTok laid off the most employees there.

In essence, TikTok’s layoffs in Malaysia reflect ByteDance’s emphasis on AI and automation, cost reduction, and a restructuring strategy aimed at enhancing operational efficiency globally. With these changes, ByteDance is positioning itself to operate more effectively on a global scale, despite the challenges and impact on its workforce in certain regions.

Employees affected by the layoffs, who preferred to remain anonymous, revealed that they received notification of the job cuts through an email from the company. Tik Tok Monsters laid off more than 700 representatives in ASEAN to adapt to this new strategy.