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A hot potato: Meta set out to reorganize much of its workforce around AI at the beginning of this year, betting that agents could help the company move faster while reducing the need for larger teams. The company went ahead with 10% workforce cuts in May but ultimately dropped plans for a broader round of layoffs after its AI workplace "overhaul" ran into employee resistance and technical problems.
Meta had been preparing a restructuring program called Project OT, or Organization Transformation. According to an internal planning document reviewed by Reuters and three people familiar with the project, the plan was built around an "AI-native" model that would rely more heavily on AI agents and smaller groups of employees. Internal planning called for cutting some teams by as much as 60% through layoffs, hiring freezes, and performance-related exits.
The plan lost momentum as Meta found that its AI tools were not producing the gains executives had expected. Internal figures showed a sharp increase in AI-assisted code, but a much smaller increase in product improvements reaching users.
