Meta Slows Down Project OT: Limited Cuts and AI Teams Retained

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Key Takeaways

1Meta has launched Project OT to transform the company around AI agents and small teams

2After an initial wave that eliminated about 10% of positions, the second wave was canceled

3Code changes have increased by 220%, but visible features have only progressed by 36%, and internal morale has declined

💡Why it matters — The project illustrates the current limitations of AI automation in a large tech company, both operationally and socially.

Meta has halted the most aggressive version of its "AI native" transformation following an initial round of job cuts. Internal data indicates a disconnect between the surge in code changes and visible gains, amid declining morale and internal tensions. Reduced teams are still operating, with no promise of widespread layoffs this year.

The maximalist version withdrawn, reduced cells remain active

Meta has only abandoned the most ambitious version of its reorganization. Small cells continue to operate across several units. The public commitment from leadership is limited to the absence of widespread layoffs this year. In July, Mark Zuckerberg acknowledged that AI agents were progressing more slowly than expected.

Much more code, few additional features

In one year, code modifications on Meta's platforms increased by 220%, but changes resulting in visible new features for users only progressed by 36%. As early as March, infrastructure teams reported reliability issues related to the influx of generated code.

Deteriorating social climate and internal tools put on hold

The semi-annual internal barometer dropped from 74% to 55% in favorable opinions. Many employees shared photos of elephants on Workplace to mock the layoffs that had not been officially announced. The internal tool used to record keystrokes and mouse movements for training agents has been suspended, and some engineers who had been involuntarily reassigned were able to return to their original teams.

Two-phase cuts revised at the last minute

The reorganization was planned in two waves, in May and then in November. On the evening of May 19, the second wave was canceled, but the first still resulted in approximately 10% of positions being eliminated the following day. The reason for this turnaround has not been established. A few months earlier, management had considered cuts of up to 20% of the workforce.

AI native goal and new team structures

Meta confirmed the existence of Project OT, for Organization Transformation, while downplaying its scope. The project aimed to make the company an AI native structure, with AI agents taking on part of the daily work. An internal guide proposed replacing teams of 10 to 20 specialists with groups of 3 to 5 people, as well as consolidating job titles under a builder function. The reorganization plans envisioned reductions of up to 60% of staff in certain teams through layoffs, hiring freezes, and departures of employees deemed underperforming, while clarifying at Meta that these rates only pertained to specific teams. This project emerged in January during a leadership retreat in Hawaii and was the subject of several dozen internal documents as well as over twenty testimonies. A similar case was observed at Klarna, which had assigned the management of its customer service to a chatbot before rehiring human staff in 2025, with its CEO admitting to having underestimated the risks.