How Zuckerberg's Push to Swap Humans for AI Fell Apart

Meta reportedly abandoned or paused a second wave of layoffs linked to Project OT, an AI-focused restructuring plan that could have eliminated thousands of jobs. The initiative aimed to organize the company around smaller teams of human employees overseeing AI agents and taking on broader “builder” roles. Executives reportedly considered reducing the headcount of some teams by as much as 60 percent through layoffs, unfilled positions and performance-based departures. However, Meta’s internal AI systems failed to deliver the productivity improvements executives had expected. AI tools generated 220 percent more code changes to the company’s platforms and infrastructure year over year, but the number of new or improved features reaching users increased by only 36 percent. At the same time, major technical and security incidents rose by 40 percent, while employees spent up to 70 percent more time fixing the resulting problems. Mark Zuckerberg later admitted that he had overestimated the pace of progress in AI agents. Employee backlash over software tracking mouse movements and keystrokes further damaged morale and contributed to growing labor-organizing efforts.

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