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Meta Halts AI Restructuring Plan Amid Concerns Over Productivity

Nurul Darari by Nurul Darari
August 28, 2026
in Tech
Reading Time: 3 mins read
Meta Halts AI Restructuring Plan Amid Concerns Over Productivity

Meta Halts AI Restructuring Plan Amid Concerns Over Productivity

Jakarta, ThedailyID — Meta CEO Mark Zuckerberg has abandoned a major restructuring plan that could have reduced some teams by as much as 60% as the company pushes deeper into artificial intelligence (AI).

The plan, known as Project OT (Organization Transformation), focused on cutting costs through layoffs, role changes, and the use of AI to handle more tasks.

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Meta initially planned to roll out Project OT in two waves. The company carried out the first round in May, cutting around 10% of its workforce. It later decided not to proceed with the second wave.

Meta said Project OT was only a scenario-planning exercise designed to assess the potential impact of changing roles, closing open positions, and reducing staff.

“In the end, we did not move forward with every scenario from the exercise. We never assumed from the start that we would implement them,” the company said in a statement cited by Reuters, Friday (27/8).

The restructuring reflected Meta’s broader push toward an AI-native workplace. Under a new playbook, some traditional product designer and engineering roles could shift toward “builder” positions. These employees would work with AI agents to determine and complete daily tasks.

Meta also began moving some employees into its applied AI unit. The team worked on software designed to improve the coding abilities of Meta’s AI models.

The company also explored ways to identify what it called “irreplaceable talent”, using the term “10X Performer” for employees considered capable of producing the work of several people.

Meta’s AI push created growing concern among employees. The company had also required some workers to use software that tracked keyboard and mouse activity. Meta used the data to help AI agents learn how humans interact with computers.

Employees protested on Meta’s internal Workplace platform. Many feared they could end up training AI systems that would eventually replace them.

Employee sentiment also fell sharply. An internal survey showed positive sentiment dropping from 74% to 55%. At the same time, efforts to organize workers gained momentum.

The technology itself also created problems. Internal data reportedly showed that AI agents caused service disruptions and potential data leaks to rise 40% year over year. Staff also spent 70% more time resolving related issues.

Those problems influenced Zuckerberg’s decision to cancel the second Project OT wave, which Meta had planned for November.

Zuckerberg later told employees that he did not expect another company-wide round of layoffs this year. He said he wanted to provide greater stability.

Meta has since paused its keyboard and mouse tracking program. Some employees in its AI unit have also returned to their previous teams.

However, concerns remain that the restructuring could return in the future.

Zuckerberg acknowledged in July that Meta had misjudged the pace of its AI transition. He said AI agents were not advancing as quickly as he had expected.

In his 6,500-word essay, The Future is for Everyone, Zuckerberg predicted that AI could eventually lead to smaller workforces across individual companies.

“This does not mean that the total number of jobs will decrease. It means there will be more companies with fewer people in each company,” he wrote.

Tags: AIAI Agentsartificial intelligencelayoffsMark ZuckerbergMetaProject OTSilicon ValleyTechnologyThedailyIDWorkforce Restructuring
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