The Latest News on Meta: Job Cuts and Potential EU Probe

Key Takeaways

• Meta shares lost ground Monday amid reports of job cuts and indications the social media giant could face a probe by European regulators over its efforts to counter disinformation.
• Depending on the outcome of such a probe, Meta could face significant fines under Europe’s Digital Services Act.
• Despite recent losses, Meta shares have gained about 22% since the beginning of 2024.

Meta Platforms (META) shares dropped 2.4% to $432.62 Monday amid reports of job cuts and indications the social media giant could face a probe by European regulators over its efforts to counter disinformation.

Meta Could Face EU Probe

The European Commission could soon launch an investigation of the parent of Facebook, Instagram, and WhatsApp for how it handles disinformation from Russia and other countries ahead of elections later this year, the Financial Times reported.

Depending on the outcome of such a probe, Meta could face significant fines under Europe’s Digital Services Act.

Meta did not immediately respond to a request for comment and the European Commission declined to provide a statement.

Layoffs Ahead

Separately, Meta’s Oversight Board, an independent group that oversees content on its platforms, advised some workers of potential layoffs ahead, the Washington Post reported.

The Post noted that Chair Stephen Neal suggested “targeted cuts” would further optimize the board’s operations by “prioritizing the most impactful aspects of our work.”

Despite Monday’s losses, Meta shares have gained about 22% since the beginning of 2024.

Read the original article on Investopedia.

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In recent news, Meta Platforms, the parent company of Facebook, Instagram, and WhatsApp, has been facing challenges that have impacted its stock performance. Reports of job cuts and a potential probe by European regulators have caused Meta shares to drop by 2.4% on Monday.

The European Commission is considering launching an investigation into Meta’s handling of disinformation from countries like Russia ahead of upcoming elections. If found in violation, Meta could face significant fines under Europe’s Digital Services Act. The company has not yet responded to requests for comment on this matter.

Additionally, Meta’s Oversight Board has informed some employees about possible layoffs in the near future. Chair Stephen Neal mentioned that targeted cuts would help optimize the board’s operations by focusing on the most impactful aspects of their work.

Despite these challenges, Meta shares have actually seen a 22% increase since the beginning of 2024. This indicates that investors still have confidence in the company’s long-term prospects.

It will be interesting to see how Meta navigates these obstacles and whether they will have any lasting impact on the company’s overall performance. Stay tuned for more updates on this developing story.

For more information and updates on Meta Platforms, visit Investopedia for the original article.