Meta scrapped plan to cut 25% of workforce in shift to "AI native" model
Meta had drafted an internal plan called Project OT to restructure the company around an "AI native" model, which one executive said could have cut headcount by roughly 25% or more, but Mark Zuckerberg canceled the plan before layoff numbers were finalized.
According to Reuters, citing sources and internal documents, Meta had developed an internal initiative known as Project OT aimed at transforming the company into what it called an "AI native" organization. One of the reviewed documents described this as an environment where AI-ready tools and agents interact, workflows are automated, and new products are built AI-first.
One HR executive reportedly said that under these scenarios, Meta's headcount could have dropped by about 25 percent or more. Some employees would have been shifted into new roles, while others would have been laid off. Meta told Reuters it canceled Project OT before determining the exact scale of layoffs the plan would have required.
Savings redirected to top performers
Reuters reported that Meta planned to use some of the money saved from layoffs to boost pay for high-performing employees, particularly those with AI engineering skills. Being "AI native," per the internal document, also included selling AI agents to third parties — something Meta actually began doing in June.
This year, Meta reportedly launched a pilot program restructuring engineering, research, and at least eight other teams into smaller groups. This followed an earlier internal document called the "AI-Native Playbook," in which a member of Meta's product management team described how the pilot would eliminate middle management layers and rely on "agent-assisted analysis" to help prioritize daily work.
Reuters noted that both HR staff and AI systems were expected to assist Meta leadership in promotion decisions. Meta pushed back on this characterization, telling the publication that performance ratings and promotion decisions were and are made by people, not AI.
Zuckerberg reverses course
Shortly after Meta carried out its May layoffs, Zuckerberg reportedly canceled a second wave of cuts that had been planned for November. Reuters said it could not determine exactly what prompted him to change direction.
