Meta's AI Agent Experiment Caused Chaos, Leading to Scrapped Layoff Plan

Meta explored a plan to reduce team headcounts by up to 60% and rely on AI agents for routine tasks. The initiative, known as Project OT, resulted in some layoffs but was ultimately abandoned. Internal reports indicate the AI agents caused significant disruptions, highlighting the difficulties of replacing human workers.

Project OT, initiated by Zuckerberg in January, explored restructuring teams so AI agents handled routine work while small human teams supervised. The plan envisioned two layoff rounds, with the first occurring in May and the second later canceled. Internal documents described an "AI native" company where automated workflows and AI-first development were standard.

The pilot program reshaped engineering, research, and at least eight other teams into smaller units, removing middle management roles. Reuters reviewed internal documents and spoke with over 20 people familiar with the effort. Meta stated that promotion decisions remained human-made, though the company acknowledged the exercise moved thousands of employees to priority work on new teams.