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Mark Zuckerberg’s Meta Planned 60% Team Cuts, but AI Agents Failed to Deliver

Meta reportedly explored cutting some teams by up to 60% under an AI-first strategy, but employee backlash and underperforming AI agents forced the company to rethink the plan.

Mark Zuckerberg’s Meta Planned 60% Team Cuts, but AI Agents Failed to Deliver

Meta CEO Mark Zuckerberg reportedly explored an ambitious plan to transform the company into an AI-native organisation, with artificial intelligence agents taking over a significant share of work currently handled by employees. The strategy reportedly included reducing the size of some teams by as much as 60%.

The internal initiative, known as Project OT or Organisational Transformation, was aimed at restructuring Meta around smaller teams supported by AI agents. The idea was to have highly skilled employees supervise AI systems while automated agents handled routine and repetitive work.

However, the plan appears to have faced major challenges as Meta’s AI agents reportedly failed to deliver the expected productivity gains and employees pushed back against the possibility of significant workforce reductions.

According to reports, Meta considered implementing team reductions in two phases. While the company proceeded with one round of layoffs in May, a second wave that was reportedly planned for November was later abandoned.

Meta’s AI-First Workplace Strategy Faces Challenges

The central idea behind Project OT was to build a workplace where fewer employees could manage larger workloads with the help of autonomous AI agents.

Meta reportedly envisioned smaller teams of highly skilled workers overseeing AI systems capable of handling everyday tasks. The company hoped that increased automation would allow human employees to focus on more complex and strategic responsibilities.

But the transition proved more difficult than expected.

Internal concerns reportedly emerged after AI agents did not generate the level of productivity improvements the company had anticipated. Employee resistance and falling morale also became significant challenges as workers were asked to adopt AI tools while facing the possibility that those same technologies could eventually reduce the need for human jobs.

The development highlights a wider challenge facing the technology industry. While AI companies have promoted autonomous agents as a major transformation for the workplace, deploying these systems reliably across complex, real-world organisational tasks remains difficult.

Meta Shifts Focus From AI Replacement to AI Assistance

Meta has not abandoned its AI ambitions, but its approach appears to be shifting.

Zuckerberg has increasingly framed AI as a technology that can make smaller teams more productive rather than simply replacing large numbers of employees. He has also acknowledged that the development of AI agents has been slower than initially expected.

The Meta CEO reportedly believes that AI agents could become significantly more useful within the next three to six months.

Despite the challenges surrounding Project OT, Meta continues to invest heavily in artificial intelligence. The company remains focused on developing AI models, expanding data centre capacity and attracting top AI talent.

The reported rethink of Meta’s workforce strategy, however, demonstrates that even major technology companies with extensive AI resources are still working through the practical limitations of autonomous AI agents in the workplace.

The episode also raises broader questions about predictions that artificial intelligence will rapidly replace large sections of the global workforce. For now, Meta’s experience suggests that while AI can assist employees and automate certain tasks, fully replacing human teams remains a far more complicated challenge.

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