TikTok Cuts Hundreds of Jobs in Shift Towards AI Content Moderation

FILED - 22 September 2023, Berlin: Tiktok platform logo is displayed on a smartphone. Photo: Monika Skolimowska/dpa
FILED - 22 September 2023, Berlin: Tiktok platform logo is displayed on a smartphone. Photo: Monika Skolimowska/dpa
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TikTok Cuts Hundreds of Jobs in Shift Towards AI Content Moderation

FILED - 22 September 2023, Berlin: Tiktok platform logo is displayed on a smartphone. Photo: Monika Skolimowska/dpa
FILED - 22 September 2023, Berlin: Tiktok platform logo is displayed on a smartphone. Photo: Monika Skolimowska/dpa

Social media platform TikTok is laying off hundreds of employees from its global workforce, including a large number of staff in Malaysia, the company said on Friday, as it shifts focus towards a greater use of AI in content moderation.
Two sources familiar with the matter earlier told Reuters that more than 700 jobs were slashed in Malaysia. TikTok, owned by China's ByteDance, later clarified that less than 500 employees in the country were affected.
The employees, most of whom were involved in the firm's content moderation operations, were informed of their dismissal by email late Wednesday, the sources said, requesting anonymity as they were not authorized to speak to media.
In response to Reuters' queries, TikTok confirmed the layoffs and said that several hundred employees were expected to be impacted globally as part of a wider plan to improve its moderation operations.
TikTok employs a mix of automated detection and human moderators to review content posted on the site.
ByteDance has over 110,000 employees in more than 200 cities globally, according to the company website.
The technology firm is also planning more retrenchments next month as it looks to consolidate some of its regional operations, one of the sources said.
"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 expects to invest $2 billion globally in trust and safety this year and will continue to improve efficiency, with 80% of guidelines-violating content now removed by automated technologies, the spokesperson said.
The layoffs were first reported by business portal The Malaysian Reserve on Thursday.
The job cuts occur as global technology firms face greater regulatory pressure in Malaysia, where the government has asked social media operators to apply for an operating license by January as part of an effort to combat cyber offences.
Malaysia reported a sharp increase in harmful social media content earlier this year and urged firms, including TikTok, to step up monitoring on their platforms.



Trump Extends Deadline for TikTok Sale by 90 Days

FILE PHOTO: A TikTok logo is displayed on a smartphone in this illustration taken January 6, 2020. REUTERS/Dado Ruvic/Illustration/File Photo
FILE PHOTO: A TikTok logo is displayed on a smartphone in this illustration taken January 6, 2020. REUTERS/Dado Ruvic/Illustration/File Photo
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Trump Extends Deadline for TikTok Sale by 90 Days

FILE PHOTO: A TikTok logo is displayed on a smartphone in this illustration taken January 6, 2020. REUTERS/Dado Ruvic/Illustration/File Photo
FILE PHOTO: A TikTok logo is displayed on a smartphone in this illustration taken January 6, 2020. REUTERS/Dado Ruvic/Illustration/File Photo

President Donald Trump announced Thursday he had given social media platform TikTok another 90 days to find a non-Chinese buyer or be banned in the United States.

"I've just signed the Executive Order extending the Deadline for the TikTok closing for 90 days (September 17, 2025)," Trump posted on his Truth Social platform, putting off the ban for the third time.

A federal law requiring TikTok's sale or ban on national security grounds was due to take effect the day before Trump's January inauguration.

The Republican, whose 2024 election campaign relied heavily on social media, has previously said he is fond of the video-sharing app.

"I have a little warm spot in my heart for TikTok," Trump said in an NBC News interview in early May. "If it needs an extension, I would be willing to give it an extension."

TikTok on Thursday welcomed Trump's decision.

"We are grateful for President Trump's leadership and support in ensuring that TikTok continues to be available for more than 170 million American users," the platform said in a statement.

Digital Cold War?

Motivated by a belief in Washington that TikTok is controlled by the Chinese government, the ban took effect on January 19, one day before Trump's inauguration, with ByteDance having made no attempt to find a suitor.

TikTok "has become a symbol of the US-China tech rivalry; a flashpoint in the new Cold War for digital control," said Shweta Singh, an assistant professor of information systems at Warwick Business School in Britain.

Trump had long supported a ban or divestment, but reversed his position and vowed to defend the platform -- which boasts almost two billion global users -- after coming to believe it helped him win young voters' support in the November election.

The president announced an initial 75-day delay of the ban upon taking office. A second extension pushed the deadline to June 19.

He said in May that a group of purchasers was ready to pay TikTok owner ByteDance "a lot of money" for the video-clip-sharing sensation's US operations.

Trump knows that TikTok is "wildly popular" in the United States, White House spokeswoman Karoline Leavitt told reporters Thursday, when asked about the latest extension.

"He also wants to protect Americans' data and privacy concerns on this app, and he believes we can do both things at the same time."

The president is "just not motivated to do anything about TikTok," said independent analyst Rob Enderle. "Unless they get on his bad side, TikTok is probably going to be in pretty good shape."

Tariff turmoil

Trump said in April that China would have agreed to a deal on the sale of TikTok if it were not for a dispute over his tariffs on Beijing.

ByteDance has confirmed talks with the US government, saying key matters needed to be resolved and that any deal would be "subject to approval under Chinese law."

Possible solutions reportedly include seeing existing US investors in ByteDance roll over their stakes into a new independent global TikTok company.

Additional US investors, including Oracle and private equity firm Blackstone, would be brought on to reduce ByteDance's share in the new TikTok.

Much of TikTok's US activity is already housed on Oracle servers, and the company's chairman, Larry Ellison, is a longtime Trump ally.

Uncertainty remains, particularly over what would happen to TikTok's valuable algorithm.

"TikTok without its algorithm is like Harry Potter without his wand -- it's simply not as powerful," said Kelsey Chickering, principal analyst at Forrester.

Despite the turmoil, TikTok has been continuing with business as usual.

The platform on Monday introduced a new "Symphony" suite of generative artificial intelligence tools for advertisers to turn words or photos into video snippets for the platform.