Mark Zuckerberg wanted to cut Meta teams by 60%, but AI agents had other plans

Mark Zuckerberg needed to show Meta into an AI-first firm. His plan appears bold, that’s, let AI brokers deal with a big chunk of the work achieved by human staff, then make groups smaller and make an organization the place people and AI would work facet by facet. However the plan needed to be dropped, as an issue cropped up that the AI did not quite seem ready for the job.

In accordance with a Reuters report, Meta explored reducing the dimensions of a number of groups by as a lot as 60 per cent as a part of an inside plan known as Challenge OT, brief for Organisational Transformation. The plan, which was developed earlier this yr, was meant to make Meta an “AI-native” firm, however worker backlash, falling morale and disappointing outcomes from its AI brokers finally pressured the corporate to tug again.

Meta needed fewer people, extra AI

The thought behind Challenge OT was pretty simple. As an alternative of getting massive groups of staff dealing with on a regular basis work, Meta needed smaller teams of extremely expert employees supervising AI brokers that would deal with routine duties.

On paper, it feels like precisely the type of future Meta has been promising. Smaller groups, extra automation and AI doing the boring stuff whereas people give attention to the essential work. However issues began getting messy.

Inside plans reportedly thought of lowering some groups by as much as 60 per cent in two waves. Meta went forward with a spherical of layoffs in Could, however the firm later deserted a second wave that had been deliberate for November. Staff had pushed again onerous, whereas inside information steered that the AI brokers on the centre of the technique weren’t delivering the productiveness positive factors Meta had anticipated.

And that’s maybe essentially the most fascinating a part of this complete story. Meta shouldn’t be some firm that all of a sudden found AI final week. It has spent monumental quantities of cash constructing AI fashions, information centres and computing infrastructure. If even Meta is struggling to make autonomous AI brokers ship the promised productiveness positive factors, the entire “AI will substitute an enormous chunk of workplace work tomorrow” argument all of a sudden appears to be like rather less convincing.

The AI dream meets the office actuality

The scenario additionally created a morale downside inside Meta. Staff had been being requested to embrace AI whereas concurrently watching the corporate discover whether or not AI may substitute components of their very own jobs.

Meta has now apparently shifted the messaging. Zuckerberg has moved away from the thought of AI merely changing individuals and is as a substitute speaking about AI as a device that may empower smaller, extra productive groups. He has additionally acknowledged that AI brokers haven’t progressed as shortly as he anticipated, though he believes they might grow to be extra helpful over the following three to 6 months.

That does not imply Meta is giving up on AI. Removed from it. The corporate continues to be spending closely on AI infrastructure and expertise, whilst some buyers query what these monumental investments are producing.

– Ends

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Aug 27, 2026 09:42 IST

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