Meta Platforms' stock fell about 8% after a weak reaction to the company's first-quarter 2026 results, as CEO Mark Zuckerberg outlined major strategic changes in an internal meeting. Zuckerberg attributed the stock move to macro factors, including geopolitical tensions—specifically the US-Iran conflict—and higher
oil prices that dampened advertising demand and signaled slower near-term growth. He disclosed plans to reallocate resources toward artificial intelligence, including cutting about 8,000 employees in May. He stressed that the cuts are about reallocating talent, not blanket layoffs, and that the company still has two major cost centers: infrastructure and headcount, with increased investment in one area implying reductions in the other. Despite the layoffs, he described the core business as 'very strong' and called for accelerating product development, saying Meta aims to build more apps—potentially up to 50—though starting with a few before scaling up. Chief People Officer Janelle Gale hinted that additional rounds of layoffs could occur in the future. The WSJ article that reported the internal meeting notes the 8% stock drop and a slower growth outlook for Q2. Source: The Wall Street Journal.
