Meta pauses second wave of AI-driven layoff plan amid mixed results
Meta has put on hold the planned second round of AI-focused workforce cuts after the initiative failed to deliver expected productivity gains.
Meta spent much of the year evaluating Project OT, a restructuring effort that would embed AI agents into daily workflows and reduce middle-management layers. The plan envisioned converting specialists into general-purpose "builder" roles and potentially cutting certain team headcounts by as much as 60 percent, with layoffs, vacancy eliminations, and performance-based exits comprising the reduction. After internal data showed a 220 percent rise in AI code changes but only a 36 percent increase in user-facing features and a 40 percent rise in technical incidents, Zuckerberg announced at a town-hall that AI development had not accelerated as hoped.
Employee sentiment also fell sharply after the company installed software to track mouse movements and keystrokes. Consequently, the second wave of layoffs scheduled for November was paused, while the overall AI-assisted restructuring remains under review, with no major cuts anticipated this year.
Why it matters
The pause signals challenges in scaling AI for large-scale corporate restructuring and highlights employee resistance to surveillance.
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