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AI agents meant to replace Meta workers made “large-scale, disruptive actions”

The plan would have shifted thousands of workers into smaller AI-led teams, but employee backlash and weak productivity gains forced a pause.

  • In January 2026, Meta CEO Mark Zuckerberg initiated 'Project OT,' a plan to transform the company into an 'AI-native' organization. The strategy faltered amid employee backlash and technical problems, forcing Zuckerberg to cancel a planned second wave of restructuring.
  • Internal data revealed that while code changes increased 220% year-over-year, features reaching users rose just 36%. Major technical and security incidents spiked 40% from the previous year, with staff time spent 'firefighting' these issues jumping 70%.
  • Employee sentiment plummeted from 74% favorable to 55%, as workers protested internal tracking software and mocked layoffs as the 'elephant in the room.' Executives eventually paused the tracking program and dispatched Chief Financial Officer Susan Li to boost morale.
  • Hours before the first layoff wave on May 20, Zuckerberg cancelled the November restructuring. While the company proceeded with a 10% workforce reduction, Zuckerberg subsequently shifted his public messaging, launching a campaign positioning Meta as 'betting on people.'
  • Despite the pivot, Meta plans to invest $130 billion in AI infrastructure this year. Zuckerberg argues his vision will create an 'abundance of jobs,' though some employees speculate he may delay further headcount reductions until next year.
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Reuters broke the news in London, United Kingdom on Wednesday, August 26, 2026.
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