Meta considered cutting team sizes by up to 60% under AI restructuring plan

Meta CEO Mark Zuckerberg and senior executives considered a sweeping AI-led restructuring that could have reduced the size of some teams by as much as 60%, as the social media giant explored how artificial intelligence could reshape its workforce.

According to Reuters report, the plan, code-named Project OT, or Organization Transformation, was developed as Meta sought to become an “AI native” company. 

Internal planning documents indicated that executives considered shifting much of the routine work performed by employees to AI systems, with smaller groups of human workers overseeing virtual AI workers.

The scenario planning included two restructuring waves, with one planned for May and another for November. Potential measures included layoffs, closing vacant positions and removing employees considered poor performers. Some employees would instead be redeployed to new priority areas.

Meta ultimately proceeded with a 10% workforce reduction in May but cancelled plans for the second wave, according to an internal document reviewed by Reuters.

The decision came as employees increasingly questioned whether Meta’s AI transformation was intended to replace human workers. At the same time, internal data reportedly raised concerns about the productivity gains delivered by autonomous AI agents, a key component of the company’s strategy.

Meta confirmed the existence of Project OT, describing it as a year-long effort focused on cost reduction, redesigning team structures and moving employees into priority areas, including the production of training data for AI models.

The company said the 60% figure referred to potential reductions within some teams rather than across its overall workforce. 

It also stressed that the scenarios involved both layoffs and redeployments and that not all proposed measures were implemented.

“As part of our company restructuring earlier this year, we asked some teams to conduct a scenario planning exercise looking at the potential impact of redeployments, open role closures and cuts,” Meta said.

The company said the exercise ultimately resulted in thousands of employees being moved to newly established teams focused on priority work.

The restructuring highlights the tension facing technology companies as they seek to use increasingly capable AI systems while managing the impact on human jobs and organisational structures.

Since the launch of ChatGPT in 2022, technology leaders have increasingly explored “agentic” AI systems capable of carrying out tasks autonomously rather than simply responding to prompts.

Meta’s plans reflect a broader shift towards AI-native organisations, in which companies redesign roles and workflows around AI capabilities rather than simply adding AI tools to existing processes.