Meta Shares Slide 6% on $375M Penalty, 700-Job Cuts and $9T Option Plan
Meta Platforms shares slid 6% after a New Mexico jury ordered the company to pay $375 million for operating platforms that harmed minors. The company announced about 700 job cuts across Reality Labs, sales and recruiting divisions and unveiled an executive stock-option plan tied to a $9 trillion valuation target by 2031.
1. Jury Orders $375M Penalty
A New Mexico jury found Meta liable for operating platforms that caused harm to minors and ordered the company to pay $375 million in penalties. This verdict adds to mounting legal expenses and investor concerns over litigation risks.
2. Job Cuts Across Key Divisions
Meta announced roughly 700 layoffs spanning Reality Labs, sales teams and recruiting operations as part of broader cost-management efforts. The reductions follow earlier workforce adjustments aimed at reallocating resources amid slowing user growth.
3. Executive Stock-Option Plan Tied to $9T Target
Meta introduced an executive stock-option plan that grants awards only if the company’s market valuation reaches $9 trillion by 2031. The structure is designed to align management incentives with long-term growth goals but has yet to offset investor worries over rising costs.