Meta CEO says company to shrink teams, develop new apps using AI, WSJ says

In an internal Q&A with staff, Meta CEO Mark Zuckerberg said the Facebook parent intends to shrink teams and make more new apps as AI changes workflows at the company, the Wall Street Journal’s Meghan Bobrowsky, citing a recording of the Q&A. The CEO attributed the 8% drop in shares to investor worries over an upward revision in its expected CapEx and to its outlook for slower growth in Q2, the author says. “I think the trajectory that we’re seeing for our businesses is still very strong,” he said on the call. “But I think Q1 was, like, really insanely strong and Q2 is merely strong, and I think the combination of that and the capex increase is what drove the near-term reaction. But I don’t know.” Zuckerberg added that there was a “trajectory change” in the company’s ad business following the start of the U.S.-Iran war, the author notes. “If oil prices go up then consumers spend more of their money on oil, on gas, and less on things that they would just buy that are just kind of discretionary things that the advertising might serve,” he said.