What happened
Shares of Meta Platforms (META 0.36%) vaulted into the weekend on a high note. The Facebook and Instagram owner's share price zoomed more than 4% higher on Friday, as investors bid the company up on news that it had disbanded one of its teams.
So what
Thursday afternoon, The Wall Street Journal reported that Meta had dissolved the Responsible Innovation (RI) unit at the company. This was the team that kept an eye on the ethics of its products and services, which also include messaging app WhatsApp in addition to Facebook and Instagram.
Meta spokesman Eric Porterfield told the newspaper that most of the RI team, comprising around 24 individuals, would be shifted to other jobs at the social media giant. He added that Meta remains committed to the unit's objectives; resources devoted to these are better allocated to issue-specific items, according to Porterfield.
The RI team was formed in the wake of accusations that the company was not making enough of an effort to police content that some considered incendiary, particularly with Facebook. These allegations persist, and rarely a day passes without renewed criticism of how the company is handling the situation.
NASDAQ: META
Key Data Points
Now what
At the same time, however, Meta is struggling with declines in both operational and fundamental metrics. Among other issues, the company recently reported its first year-over-year revenue decline, while its user base isn't enjoying the explosive growth it once did. As a result, management is looking for areas in which to trim costs.
Disbanding a team keeping an eye on the ethics of Meta's business is a bit troubling from the perspective of a user and the broader social standpoint. But investors might feel it's a sign of the company's commitment to saving on expenses.
