Meta wanted to build the future of work. Instead, it got a case study in how not to roll out AI across an 80,000-person company.
A Reuters investigation revealed that Meta’s internal initiative, code-named Project OT (Organization Transformation), was designed to create what the company called an “AI-native” workforce. The goal was replacing significant portions of its human employees with AI agents, supported by skeleton crews of 3-5 people providing oversight. The plan discussed in January 2026 called for cutting team sizes by up to 60%.
The plan versus reality
On May 20, 2026, Meta laid off approximately 8,000 employees, roughly 10% of its workforce. Another 7,000 were reassigned into AI-focused roles. For context, this came on top of the more than 21,000 positions Meta eliminated during the 2022-2023 period Zuckerberg branded the “Year of Efficiency.”
The company’s projected capital expenditure on AI initiatives in 2026 could reach $145 billion. But CEO Mark Zuckerberg acknowledged in mid-2026 that the AI agents had not accelerated productivity as expected, and admitted to “mistakes” in the restructuring process.
