TikTok, the social media giant owned by China-based ByteDance, is reportedly laying off hundreds of workers, mainly those based in Malaysia, as it pushes to rely more heavily on AI in its content moderation.

While early reports said the number of layoffs in Malaysia totalled over 700, TikTok clarified the matter, saying that less then 500 staff members were affected in Malaysia.

The majority of the workers affected were in the company’s content moderation team, and were let go via email on Wednesday, according to Reuters.

TikTok later confirmed that several hundred workers would be laid off across its global workforce as part of its larger plans to modernise.

“We’re making these changes as part of our ongoing efforts to further strengthen our global operating model for content moderation,” a spokesperson for TikTok said in a statement.

According to the company, 80% of the social media platform’s content that is outwith TikTok’s guidelines is removed by automation. Its current content moderation operation has a mix of human and automated moderators.

The company says they are looking to invest $2 billion in trust and safety across their global operations this year.

The layoffs come after a contentious time for social media firms in Malaysia, as the country is asking is requiring firms to apply for an operating licence by the start of 2025, in an attempt to mitigate online offenses.

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The country cited a rise in harmful social media content this year across many social media platforms, including TikTok.

TikTok is facing its own set of scrutiny as well, as 13 different US states have levied a lawsuit against the tech giant for harming the mental health of teens.

Turning more to AI and automation of content moderation may only fan the flames against the controversial company, which recently faced senate appeals in the US for a total ban over Chinese surveillance concerns.

As AI content creation continues to harm the trustworthiness of internet content, relying on AI to moderate harmful and illegal content on one of the most popular social media sites for teens may only decrease trust in the company.