- Mark Zuckerberg's plan to replace Meta staff with AI, known as Project OT, faced significant challenges after an employee revolt and AI productivity failures.
- Initially, Project OT aimed to create an AI native future for Meta, with plans to cut workforce by as much as 60%.
- On May 20, Meta executed a 10% layoff of its workforce but canceled the planned November cuts due to employee backlash.
- By June, employee sentiment at Meta had plummeted from 74% to 55% favorable, reflecting widespread discontent.
- In early July, Zuckerberg acknowledged that the AI agent technology had not progressed as quickly as anticipated.
- The Project OT initiative was conceived during a leadership retreat in January, aiming to transform Meta's operations through AI.
- The restructuring was planned in two waves, with the first wave of layoffs occurring in May and a second wave initially scheduled for November.
- Internal data indicated that the AI technology central to Project OT was failing to deliver the expected productivity improvements.
Meta's Project OT, aimed at transforming the company through AI, faced significant challenges as employee morale plummeted. Internal data revealed a drop in favorable sentiment from 74% to 55%, indicating widespread concern over job security.16
Initially, the plan included a two-wave layoff strategy, with projections of cutting team sizes by up to 60%. However, just hours before the first wave on May 20, Zuckerberg canceled the second wave scheduled for November, responding to employee unrest and productivity failures.37
The internal sentiment shift was exacerbated by reports of 40% increase in technical incidents and a 70% rise in time spent addressing these issues, as teams struggled with the transition to AI-driven workflows. Employees feared that traditional roles would vanish, replaced by generic titles like “builder”.
Despite plans to invest $130 billion in AI infrastructure, Zuckerberg admitted that the anticipated acceleration of AI technology had not materialized as expected. This led to a significant reevaluation of the company's approach to AI integration and workforce management.8
Meta's restructuring efforts, while aimed at cost-cutting and efficiency, have sparked a revolt among employees, highlighting the challenges of balancing innovation with workforce stability.
“Meta's internal employee sentiment plunged from 74% to 55% favorable, and code changes surged 220% year-over-year while user-facing features rose only 36%. The company still plans to invest at least $130 billion in AI infrastructure this year, straining its operating cash for 2026.”
BNN Bloomberg
