Meta has scaled back a major AI-driven workforce restructuring plan after facing employee resistance and concerns over whether artificial intelligence was delivering the productivity gains the company had expected. The initiative, known internally as Project OT (Organisation Transformation), explored scenarios in which some teams could have been reduced by as much as 60%.
What Was Meta's Project OT?
Project OT was designed to transform Meta into an “AI-native” company, with artificial intelligence agents taking over a significant portion of routine work. The strategy envisaged smaller, highly skilled teams supervising AI-powered systems rather than relying on large conventional teams.
Internal planning reportedly considered two restructuring waves, with the first taking place in May and another planned for November. Importantly, the proposed 60% reduction applied to some teams under certain scenarios and was not a plan to cut 60% of Meta's entire workforce.
Why Did Zuckerberg Change Course?
One of the biggest factors appears to have been employee resistance. Meta workers reportedly became increasingly concerned that the AI transformation was effectively designed to replace human employees rather than simply assist them.
Internal employee sentiment also reportedly deteriorated significantly, adding pressure on management to reconsider the pace and scale of the restructuring.
Another major concern was whether AI was actually improving productivity as much as expected.
While AI-assisted coding activity reportedly increased substantially, internal discussions suggested that higher code output did not translate into a comparable increase in new features reaching Meta users. AI systems also reportedly created technical and security problems that required additional employee intervention.
Meta Already Implemented Some Job Cuts
The company did not completely abandon workforce reductions. Meta carried out an initial restructuring wave in May, reducing its workforce by around 10%, according to reports.
However, Zuckerberg subsequently halted the planned second wave. Meta confirmed that it had evaluated scenarios involving substantial reductions and redeployments but said it did not move forward with every scenario considered.
AI Strategy Has Not Been Abandoned
The decision to scale back Project OT does not mean Meta is backing away from artificial intelligence. The company continues to invest heavily in AI infrastructure, models and AI agents.
Instead, Meta appears to be shifting its messaging toward using AI to empower employees rather than replacing large numbers of workers outright. The experience with Project OT highlights the difficulty of transforming a huge technology company around AI while maintaining productivity, employee morale and operational stability.
What This Means for the Future of AI Jobs
Meta's experience could become an important example for other technology companies pursuing AI-led workforce transformations. Although AI can automate repetitive tasks and increase productivity in certain areas, replacing complex human workflows remains challenging.
For Meta, the immediate priority appears to be finding a balance between AI automation and human expertise. The company still sees AI as central to its future, but Project OT shows that aggressive workforce restructuring can face significant technological and organisational hurdles.
