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Inside Meta’s Failed Plan to Replace Staff With AI, and Why Zuckerberg Pulled Back
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Inside Meta’s Failed Plan to Replace Staff With AI, and Why Zuckerberg Pulled Back

Meta CEO Mark Zuckerberg launched a major internal initiative known as Project OT earlier this year, aiming to reshape the company around artificial intelligence. Internal documents reveal that executives considered cutting team sizes by as much as 60% in two waves, with AI agents expected to take over much of the daily work previously handled by human employees.

Tristan R.
By Tristan R.

Senior Author · August 26, 2026

2 min
Key takeaways
Meta CEO Mark Zuckerberg launched a major internal initiative known as Project OT earlier this year, aiming to reshape the company around artificial intelligence.
Internal documents reveal that executives considered cutting team sizes by as much as 60% in two waves, with AI agents expected to take over much of the daily work previously handled by human employees.
Employee Backlash Grows Over Layoffs and AI Monitoring As details of the plan became public, Meta employees grew increasingly frustrated, especially after learning that tracking software was being installed on their devices to record keystrokes and mouse movements for AI training purposes .

Meta CEO Mark Zuckerberg launched a major internal initiative known as Project OT earlier this year, aiming to reshape the company around artificial intelligence. Internal documents reveal that executives considered cutting team sizes by as much as 60% in two waves, with AI agents expected to take over much of the daily work previously handled by human employees.

Employee Backlash Grows Over Layoffs and AI Monitoring

As details of the plan became public, Meta employees grew increasingly frustrated, especially after learning that tracking software was being installed on their devices to record keystrokes and mouse movements for AI training purposes. Many staff feared they were effectively training their own replacements. Internal sentiment surveys showed employee satisfaction dropping sharply, while technical issues linked to AI-generated code also increased significantly.

Zuckerberg Cancels Second Wave of Cuts

Hours before the first layoff wave took effect in May, cutting 10% of Meta’s workforce, Zuckerberg called off the planned second wave scheduled for November.

He later acknowledged that AI agent technology had not progressed as quickly as expected. Since then, Meta has shifted its public messaging toward a more people-focused approach, even as the company continues heavy investment in AI infrastructure.

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About the author

Tristan R.
Tristan R.

8+ years covering crypto markets, macro, and geopolitics. Previously at Decrypt and CoinDesk. Focused on the intersection of digital assets and traditional finance.