Meta considered cutting some teams by 60% in AI overhaul
Project OT promised to reshape Meta's workforce around artificial intelligence, but technical chaos, employee revolts, and canceled cuts tell a messier story.
Meta considered reducing some teams by as much as 60% under an internal restructuring initiative designed to reorganize the company around artificial intelligence, according to Reuters.
The initiative, known as Project OT or Organization Transformation, envisioned replacing larger teams with smaller groups of employees supported by AI agents. Teams of 10 to 20 workers could have been reduced to groups of three to five under some scenarios.
Meta planned two rounds of workforce reductions, with one taking place in May and another initially expected in November. The company ultimately canceled the second round as employee opposition increased and internal data raised questions about whether AI tools were delivering the expected productivity gains.
The May restructuring reduced Meta’s workforce by roughly 10%. The broader plan also included closing open positions, reducing management layers, and identifying top employees who could oversee more work with AI assistance.
Employee sentiment deteriorated as details of the restructuring emerged. An internal company measure of workforce sentiment reportedly fell from 74% favorable to 55%.
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Technical concerns also complicated the initiative. Internal data reviewed by Reuters showed increases in disruptions and security incidents linked to the use of AI agents without sufficient oversight. Meta employees also questioned whether increased AI-generated work was translating into comparable improvements in products.
By July, Zuckerberg acknowledged internally that AI agent technology had not advanced as quickly as anticipated. Meta subsequently shifted its messaging toward using AI to empower employees and consumers rather than primarily replacing human work.
Meta confirmed Project OT but disputed the suggestion that it intended to cut 60% of its total workforce. The company said the initiative involved scenario planning around redeployments, closing open roles, and potential cuts and that several scenarios were ultimately abandoned.