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Meta Staff Revolt Stops Massive AI Layoffs
26 Aug
Summary
- Meta explored 60% team cuts for an AI-native future.
- Employee revolt and AI agent tech concerns halted plans.
- Zuckerberg called off second wave of layoffs amid backlash.
Meta considered a radical "AI native" reorganization, Project OT, that could have reduced team sizes by as much as 60%. This initiative, planned in two waves, aimed to automate many daily tasks using AI agents, with humans overseeing smaller, highly skilled teams. The plan faced significant internal opposition from employees concerned about job displacement and doubts about the AI technology's performance gains.
In May 2026, just before the first wave of planned layoffs, CEO Mark Zuckerberg canceled the second wave of restructuring. This decision followed an employee revolt and emerging data suggesting the AI agent technology was not delivering expected productivity. Meta confirmed the existence of Project OT but stated it was focused on cost-cutting and team redesign, not a 60% workforce reduction.
Despite the internal turmoil, Meta proceeded with a 10% workforce reduction on May 20, 2026, the day after the initially planned first wave. Zuckerberg later assured remaining employees that no further company-wide layoffs were expected for the remainder of 2026, aiming to provide stability amid significant AI investments and scrutiny.
