Meta created an Applied AI unit in March 2026 with roughly 6,500 engineers and product managers, many reassigned against their will. This restructuring produced a 220% increase in code changes but only 36% growth in user-facing features, while security incidents jumped 40%. Nearly 1,600 employees signed a petition against surveillance practices, and Meta laid off approximately 8,000 workers in May 2026, representing 10% of its workforce. Employee morale dropped from 74% to 55% in internal surveys. Despite these difficulties, Meta invested $14.3 billion for a 49% stake in Scale AI.
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