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Meta considered cutting teams by 60%, employee backlash helped slow restructuring

• By Samriddhi Srivastava
Meta considered cutting teams by 60%, employee backlash helped slow restructuring

Meta considered restructuring scenarios that could have reduced the size of some teams by as much as 60% while shifting portions of their work to artificial intelligence agents, according to a Reuters report based on internal documents and interviews with people familiar with the company's operations.

The initiative, known internally as Project OT, short for Organisation Transformation, formed part of a broader effort to rethink how work is organised across the parent company of Facebook, Instagram and WhatsApp.

While Meta ultimately did not implement all of the scenarios examined during the planning process, the exercise provides a detailed look at how one of the world's largest technology companies is evaluating the future relationship between human workers and AI systems.

Inside Meta's organisational redesign plans

According to Reuters, Project OT emerged from discussions among senior leaders in early 2026 and focused on how automation and AI could reshape organisational structures.

One of the proposals reportedly examined replacing traditional product teams, often made up of 10 to 20 specialists, with significantly smaller groups of around three to five employees.

Under the model, employees would primarily focus on overseeing and directing products, while AI systems would take on a larger share of operational and development work.

The restructuring scenarios also explored reducing management layers and identifying employees considered particularly difficult to replace.

Meta confirmed to Reuters that Project OT existed. However, the company said the scenarios were planning exercises rather than predetermined decisions.

According to the report, Meta stated that teams had been asked to model the potential effects of redeployment, vacancies and workforce reductions, while emphasising that not every scenario under consideration was ultimately pursued.

Workforce reductions already underway

The planning exercise took place alongside broader workforce changes at the company.

Reuters reported that Meta carried out approximately 8,000 job cuts in May, representing around 10% of its workforce at the time.

The report also stated that a second planned round of reductions was abandoned shortly before implementation.

The developments reflect the growing pressure on large technology companies to balance investment in AI with cost management and organisational efficiency.

Employee resistance emerged as a key obstacle

As discussions around Project OT progressed, internal opposition reportedly intensified.

According to Reuters, many employees questioned both the scale of the proposed restructuring and the company's increasing reliance on AI-driven workflows.

A particularly contentious issue involved a workplace monitoring initiative introduced for employees in the United States.

The programme reportedly allowed the collection of information including:

  • Keyboard activity
  • Mouse movements
  • Computer screen data

The stated objective was to generate information that could help train AI systems to perform workplace tasks.

Reuters reported that the programme prompted significant resistance, with more than 1,000 Meta employees signing a petition opposing the monitoring measures.

Internal sentiment also weakened during the period.

According to data cited by Reuters, favourable responses in Meta's internal Pulse survey declined from 74% to 55%.

Questions emerged over AI productivity gains

The restructuring discussions coincided with growing scrutiny of how effectively AI systems were improving productivity.

According to Reuters, Meta leaders had anticipated that AI tools would dramatically accelerate software development and technical work.

Internal data, however, reportedly suggested a more complex picture.

Figures cited in the report showed a significant increase in coding activity without a corresponding increase in user-facing improvements.

According to comments attributed to Andrew Bosworth, Meta's Chief Technology Officer, code changes made to internal platforms increased 220% year-on-year, while changes resulting in new or improved customer features rose 36%.

The discrepancy raised questions about whether higher output was translating into proportional business value.

Reuters also reported internal concerns regarding reliability and operational performance.

According to internal posts reviewed by the news agency:

  • Technical incidents increased
  • Security incidents rose
  • Engineering teams spent more time resolving issues

These developments appeared to complicate expectations around rapid AI-led productivity improvements.

Zuckerberg signals a more measured timeline

At a July town hall meeting cited by Reuters, Mark Zuckerberg acknowledged that the development of AI agents was progressing more slowly than he had anticipated.

According to the report, the Meta chief executive indicated that the technology would require several additional months of development before reaching expected levels of capability.

The comments suggest that while Meta continues to view AI agents as strategically important, the company recognises the practical limitations that remain.

Investment in AI continues to accelerate

Despite concerns surrounding productivity and employee sentiment, Meta has not slowed its investment in artificial intelligence.

According to Reuters, the company plans to spend at least $130 billion on AI infrastructure this year while continuing to expand its AI engineering and research capabilities.

The report also noted changes within Meta Superintelligence Labs, where approximately 600 positions were reduced even as the unit continued recruiting specialised AI researchers and engineers.

The contrast highlights a broader trend across the technology sector. Companies are reducing some categories of roles while aggressively competing for highly specialised AI talent.

A test case for AI-driven workforce transformation

Project OT offers insight into how major technology companies are reassessing workforce structures in the AI era.

Rather than treating AI solely as a productivity tool, the exercise explored whether smaller groups of employees supported by AI agents could perform work traditionally handled by much larger teams.

At the same time, the reported retreat from some of the most aggressive scenarios suggests practical constraints remain. Employee acceptance, operational reliability and measurable productivity gains continue to influence how quickly AI-led organisational change can occur.

For Meta, the challenge now is balancing ambitious AI investments with workforce stability and operational performance. As the company continues investing heavily in infrastructure, research and specialised talent, the longer-term success of its strategy may depend on whether AI systems can consistently deliver productivity improvements without creating new organisational and technical risks.