TikTok is cutting jobs across its global operations. This is due to a shift towards using Artificial Intelligence for content moderation, which has led to the layoffs of hundreds of employees in Malaysia and the UK.

According to Reuters, two sources familiar with the matter said that over 700 jobs will be cut. 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.

A TikTok spokesperson confirmed the layoffs, saying, “We’re making these changes as part of our ongoing efforts to further strengthen our global operating model for content moderation.” The report noted that the company plans to invest $2 billion globally in trust and safety initiatives this year, with a focus on improving efficiency through automated technologies.

TikTok’s job cuts are not limited to Malaysia, as similar cuts are happening in the UK. The Daily Mail reports that at least 125 UK content moderation and safety employees have been notified that their jobs are at risk.

This represents 25 percent of TikTok’s 500-strong UK moderation division. The social media giant confirmed the UK job cuts to the Daily Mail. An internal email to UK staff cited increased moderation demands due to fluctuating content volumes, growing complexity, and a wider range of harmful content and bad actors as factors in the decision.

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The memo also indicated TikTok’s growing reliance on advanced technology for improved accuracy, consistency, and scalability in content moderation. It aims to enhance collaboration with third-party partners, manage fluctuating volumes, and optimise 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 percent increase from a year earlier. Operating loss was $1.37 billion, more than double the $512.1 million loss it recorded in 2022, while its negative operating margin grew to 29.9 percent from 19.6 percent the year before.

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 reorganisation.