TikTok slashes hundreds of jobs globally as it shifts focus to AI content moderation (reports) – Music Business Worldwide

TikTok is implementing substantial job cuts across its global operations, with a particular focus on content moderation teams.

The move comes as the ByteDance-owned platform pivots towards increased use of artificial intelligence in content moderation, which has resulted in the laying off of hundreds of employees in Malaysia and the UK.

The cuts will particularly hit Malaysia, where Reuters reported, citing “two sources familiar with the matter”, that over 700 jobs will be eliminated. However, the company later clarified that the number affected was less than 500. These employees, primarily involved in content moderation, were reportedly informed of their dismissal via email late Wednesday.

A TikTok spokesperson confirmed the layoffs, stating, “We’re making these changes as part of our ongoing efforts to further strengthen our global operating model for content moderation.”

The company plans to invest $2 billion globally in trust and safety initiatives this year, with a focus on improving efficiency through automated technologies, the report said.

The restructuring extends beyond Malaysia, with reports of similar cuts in the UK. According to The Daily Mail, at least 125 employees in content moderation and safety roles in the UK have been told their positions are at risk. This represents 25% of TikTok’s 500-strong UK moderation division.

“We’re making these changes as part of our ongoing efforts to further strengthen our global operating model for content moderation.”

TikTok Spokesperson

The job cuts in the UK were confirmed by a TikTok spokesperson to Daily Mail. Additionally, an internal email to UK staff, which the news outlet obtained, cited “increasing demands on our moderation efforts due to fluctuating volumes, growing complexity, and a wider range of harmful content and bad actors” among the factors behind the latest decision.

The memo also hinted at TikTok’s increasing reliance on “advanced technology for greater accuracy, consistency, and scalability” in content moderation, which the company says “would enhance our collaboration with our third-party partners, to manage fluctuating volumes and optimize resource planning.”

“I believe this restructuring would strengthen our regional operations, making us more efficient, effective, and resilient. It would enable us to take on more challenging work while continuing our mission to provide a safe environment where users can inspire creativity and bring joy,” the memo added.

The layoffs in the UK came shortly after TikTok Information Technologies UK reported $4.57 billion in turnover in 2023, a 74.6% increase from a year earlier. Operating loss came in at $1.37 billion, more than double the $512.1 million loss it recorded in 2022, while its negative operating margin grew to 29.9%, from 19.6% the year before.

The move towards AI-driven moderation has raised concerns among industry experts. John Chadfield, technology officer at the Communication Workers Union (CWU), which represents 200 TikTok workers in the UK, said, “TikTok works because content moderators keep the quality of their content consistently safe. Treating their own staff in Trust and Safety as disposable is shortsighted.

“TikTok HR alludes to job cuts being driven by AI, but as tech workers we know that behind AI is the very human exploitation of content moderators in the Global South,” Chadfield was quoted by The Bureau of Investigative Journalism as saying.

Chadfield added that hundreds of TikTok employees in London have formed a union “to fight for their jobs and improve their conditions.”

“We hope TikTok takes this as an opportunity to think strategically about employee retention and the very clear link with the business’ global profitability and growth.”

The latest development comes five months after CNN reported that TikTok was planning to cut a substantial portion of its operations and marketing workforce.

In June, Bloomberg reported that ByteDance slashed about 450 jobs at its Indonesian e-commerce arm in the first round of cuts since merging its TikTok Shop with local rival Tokopedia.

Earlier in January, NPR reported that TikTok laid off 60 staff across its sales and advertising divisions, which a spokesperson attributed to a routine reorganization.

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