Meta ordered to pay millions of dollars in damages, starts layoffs

The lawsuit was brought by a 20-year-old woman identified as Kaley, who said she became addicted to YouTube and Instagram as a minor because of features designed to keep users engaged, including infinite scrolling. Jurors concluded the companies were negligent in designing the apps and failed to warn users about potential risks.

Naturally, both companies rejected the verdict and said they plan to appeal. The case focused on platform design rather than content, an important distinction because US law generally shields social media companies from liability over user posts.

Analysts described the ruling as a setback that could eventually push tech companies to introduce stronger safety measures, potentially affecting growth. Snap and TikTok were originally part of the case but settled with the plaintiff before the trial.

The decision comes amid a growing wave of criticism of major tech companies over the safety of children and teens online. With Congress yet to pass broad regulations, states and courts have increasingly taken action. More than 20 states passed laws last year addressing children’s social media use, and another major case brought by several states and school districts is expected to go to trial later this year in federal court in Oakland, California.

The layoffs begin

Some days ago, we told you about Meta’s plans to axe up to 20% of its workforce – and the process has begun already.

Sources say that a few hundred people “across multiple teams” were laid off on Wednesday.

The reported job cuts at Meta would impact several areas, including the Reality Labs division, social media teams, and recruiting operations.

A company spokesperson explained that Meta periodically restructures teams to ensure they are positioned to meet their goals, adding that the company tries to place affected employees in other roles whenever possible.

According to 2025 data, Meta had nearly 79,000 employees as of December 31.