Reported Earlier, 'Instagram Cuts 60 Jobs, Eliminating A Layer Of Management At The Company' - TechCrunch
Portfolio Pulse from Benzinga Newsdesk
Instagram, owned by Meta Platforms Inc., has cut 60 technical program manager positions, eliminating a management layer. Impacted employees have two months to find new roles within the company before termination. The cuts align with Meta's 'Year of Efficiency' initiative to improve financial performance and reduce headcount. Instagram is reorganizing product teams around three new focus areas: Creation, Creators, and Friend Sharing, targeting teen engagement. This comes amid a lawsuit from over 40 states accusing Meta of affecting youth mental health and a Senate hearing on child safety. Meta is also implementing content restrictions for teen users on Instagram and Facebook.
January 12, 2024 | 6:35 pm
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Meta Platforms Inc. has cut 60 jobs at Instagram, focusing on efficiency and teen engagement, while facing legal and regulatory challenges. The company is also taking steps to limit harmful content for teens on its platforms.
The job cuts at Instagram may be viewed as a positive step towards Meta's efficiency goals, potentially improving financial performance. However, the ongoing legal issues and regulatory scrutiny could offset investor sentiment. The impact on the stock is likely to be neutral in the short term as the market weighs the benefits of cost-cutting against the risks of regulatory challenges.
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