Meta’s internal AI workplace transformation plan, code-named Project OT, involved scenario planning to slash team sizes by up to 60% before CEO Mark Zuckerberg abruptly canceled the second wave of cuts in May, according to internal documents reviewed by Reuters. The initiative aimed to transition Facebook and Instagram’s parent company into an AI-native organization, utilizing autonomous AI agents to handle daily tasks traditionally performed by human employees.
Project OT and the Vision for an AI-Native Workplace
Conceived during a January leadership retreat at Mark Zuckerberg’s Hawaii compound, Project OT sought to redesign Meta’s organizational structure around artificial intelligence. According to documents reviewed by Reuters, executive scenario-planning exercises explored reducing team headcounts by as much as 60%. The restructuring was structured to unfold in two distinct phases: an initial purge beginning in May, followed by a second shake-up scheduled for November.
Meta confirmed the existence of Project OT in a statement to Reuters, describing it as a year-long initiative centered on cost reduction, team redesign, and reassigning personnel to priority areas like AI training data production. However, the company noted that it never intended to cut 60% of its entire workforce and ultimately did not proceed with every scenario modeled during planning.
Employee Backlash, Data Disruptions, and the May Retreat
As details of the restructuring leaked, internal dissent grew rapidly. According to Reuters reporting, employees rattled by the prospect of the company’s AI transformation initiatives were convinced they were partly aimed at replacing them, while internal data suggested that autonomous AI agent technology was failing to deliver hoped-for productivity gains.
On the night of May 19, just hours before the first layoff wave, Zuckerberg blinked. Meta laid off 10% of its employees the next day, but it called off planning for the November cuts, according to one internal document reviewed by Reuters.
Did You Know?
Frequently Asked Questions
What was Meta’s Project OT?
Project OT (Organization Transformation) was an internal Meta initiative launched in January to redesign team structures, cut costs, and integrate autonomous AI agents into daily operations.
Why were the November cuts canceled?
Zuckerberg called off the second wave of restructuring following open revolt among employees, internal data indicating AI agent technology was failing to deliver hoped-for productivity gains, and questions from investors about gargantuan spending on AI.
Did Meta cut all 60% of its workforce?
No. Meta clarified that the 60% figure was a worst-case scenario model for specific teams, and the company at no point intended to lay off 60% of its entire workforce, ultimately executing a 10% workforce reduction in May while moving thousands of employees to priority work.
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