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Meta halts wave of AI-related layoffs

🤖 Models & LLM·Tom Levy·

Meta halts wave of AI-related layoffs

Meta halts wave of AI-related layoffs
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Key Takeaways
1Meta canceled the second wave of layoffs planned for November as part of the Project OT plan on May 19
2This plan aimed for team reductions of up to 60% and the use of AI agents supervised by small human groups
3Internal morale dropped from 74% to 55%, the agent technology did not achieve the expected gains, and Mark Zuckerberg acknowledged a delay in July
💡Why it matters — The failure of the Project OT plan illustrates the current limitations of AI automation and the impact of internal reactions on strategic decisions.

Morale at Meta has dropped from 74% to 55%, while Mark Zuckerberg admitted in July that AI agents were not progressing at the hoped-for pace. Internally, a plan called Project OT aimed for team cuts of up to 60%, with agents supervised by small human groups. On May 19, the group canceled the second wave of layoffs scheduled for November, amid technical inefficiencies, investor criticism, and employee revolt.

Morale falls from 74% to 55% and Zuckerberg admits a delay

Internal perception indicators fell from 74% to 55%. In July, Mark Zuckerberg acknowledged that agent technology had not advanced as quickly as he had hoped, publicly acknowledging a gap between stated ambition and the actual state of the tools.

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Project OT aimed for up to 60% cuts and supervised agents

Internal documents from Meta reveal a project called Project OT. This plan aimed to reduce the size of many teams by up to 60%, with the remaining tasks assigned to small human teams responsible for supervising virtual AI workers. The initial intention was to ultimately replace a much higher proportion of staff than previously communicated.

Second wave of November halted on May 19 after pushback

On the evening of May 19, just hours before the first round of layoffs, Mark Zuckerberg canceled the second wave scheduled for November. Several factors contributed to this turnaround: the agent technology did not deliver the productivity gains expected by Meta, investors criticized the scale of the budget allocated to AI, and the workforce rebelled. Employees, convinced that the software tracking their clicks and keystrokes was leading to their replacements, flooded the internal network with hostile messages. In this context, the plan failed.

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