Meta's push to build an AI-first organisation has run into resistance, forcing the company to rethink parts of a restructuring plan designed to make artificial intelligence central to its operations.
According to a Reuters report, Meta explored major organisational changes under an internal initiative called Project OT, or Organization Transformation. The effort sought to redesign teams around AI-powered systems and shift more work away from traditional team structures.
The plans were discussed at Meta's leadership retreat in Hawaii earlier this year. Internal scenarios considered cuts of up to 60% in some teams.
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However, these figures represented different planning possibilities involving layoffs, redeployment and unfilled positions, rather than a proposed company-wide workforce reduction, according to the report.
Meta eventually carried out a 10% workforce reduction in May. The company later abandoned planning for a second wave of restructuring that had been expected later in the year.
Employee resistance emerged as one of the major challenges. According to the Reuters report, some workers feared that the AI systems they were helping develop could eventually replace their own roles.
Criticism of Meta's approach reportedly increased across internal communication channels, adding to concerns about employee morale.
The company also encountered questions over whether AI was producing the productivity improvements expected by management. AI-assisted coding helped increase software output, but Reuters reported concerns about reliability and security issues associated with AI-generated and AI-driven work.
Engineers were required to spend time addressing problems, raising questions about whether the increase in output was translating into genuine efficiency.
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Meta has acknowledged Project OT, describing it as an effort to improve efficiency, redesign teams and shift employees towards priority AI initiatives. The company said it did not implement every scenario considered during the planning process.
Despite scaling back parts of Project OT, Meta remains committed to its broader AI strategy. Chief Executive Mark Zuckerberg has continued to invest heavily in AI infrastructure and talent as the company works to make artificial intelligence a bigger part of its operations.
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