Meta has abandoned its massive AI-driven restructuring plan called Project OT (Organization Transformation), which aimed to replace up to 60% of certain teams with AI tools through two layoff waves scheduled for May and November 2026. The first wave proceeded on May 20 with approximately 8,000 layoffs (10% of the workforce) and 7,000 reassignments to AI-focused roles, but Zuckerberg canceled the second wave just hours before the first cuts began. Internal data revealed a troubling gap: AI-assisted coding surged by 220%, yet user-facing product improvements grew by only 36% and security incidents climbed by roughly 40%. This combination of tool underperformance and employee resistance led the CEO to abandon the broader restructuring.
Source: Read the original article
