Investigation: Meta considered cutting 60% of teams to go AI native, but backed down after staff backlash and poor performance of AI agents.
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| Source: Techmeme | Original article
Meta considered cutting roughly 60% of many teams to become AI native but reversed the plan after employee pushback and data showing its AI agents underperformed.
Meta has shelved an aggressive restructuring plan that would have cut the size of many internal teams by as much as 60% in two waves, according to internal documents obtained by Reuters. The proposal, part of a broader “AI‑native” initiative dubbed Project OT, aimed to replace large swaths of the workforce with AI agents that could handle routine tasks. Employees pushed back hard, and a late‑stage analysis showed the AI agents were not delivering the expected productivity gains. CEO Mark Zuckerberg halted the second wave of cuts before it began.
The episode matters because it highlights the limits of a rapid, AI‑first overhaul in a mature tech giant. Meta’s ambition to become “AI native” reflects a sector‑wide scramble to embed generative models into product development, content moderation and internal operations. The failed cuts suggest that, at least for now, human expertise remains essential for many functions, and that large‑scale workforce reductions driven by AI can trigger strong internal resistance. For investors and rivals, the story is a cautionary note that hype around AI‑driven efficiency must be matched by demonstrable results.
Going forward, observers will watch how Meta recalibrates its AI strategy. Key signals include whether the company redirects resources toward upskilling staff, how it reassigns the 7,000 employees already moved to AI‑focused groups, and whether any further layoffs are announced. Regulators may also take interest in the internal data that prompted the reversal, as it could inform broader debates on AI‑related workforce changes across the tech industry. The next few months should reveal whether Meta can achieve its AI ambitions without resorting to drastic headcount cuts.
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