Meta considered cutting some teams by 60% in AI shift plan

In short: Meta explored a plan to make AI do more day to day work and cut some teams by as much as 60%, but it did not follow through on all of it.

What happened

Reuters reported that Meta created an internal plan earlier this year, code named Project OT, short for “organization transformation.” The plan looked at scenarios where some teams could be reduced by up to 60%, and it included two rounds of layoffs.

Meta confirmed to Reuters that it ran this planning exercise. It said the exercise looked at moving people to new work, closing open roles, and making cuts. Meta said it did not move forward with every scenario and it was never assumed it would.

According to Reuters, the idea was to use AI “agents” to handle much of the daily work done by thousands of employees. An AI agent is software that can take actions on your behalf, like a junior assistant who can draft, sort, and decide what to do next. Small groups of people would oversee the agents, Reuters said.

Reuters also reported that one round of layoffs tied to the project happened in May, but Meta canceled a second wave that was expected later. Reuters said it could not confirm why CEO Mark Zuckerberg changed course.

Why it matters

This story shows a real limit many companies are running into: AI can increase activity, but not always results. Reuters cited internal posts suggesting more internal code changes, but a smaller rise in new features shipped to users, along with more technical and security incidents. For workers and customers, it is a sign that replacing people with AI can create new risks and extra cleanup work, not just savings.

Source: Arstechnica