In early 2026, Meta was considering a large-scale workforce reorganization under the Organization Transformation project (Project OT), which was intended to transform the corporation into an AI-native organization and reduce the headcount of certain teams by up to 60%. Reuters reported this, citing internal documents, records, and more than 20 sources familiar with the situation. However, on the eve of the first wave of cuts, Meta CEO Mark Zuckerberg canceled the second wave of reorganization planned for November, amid employee dissatisfaction and data indicating that AI agents were not yet delivering the expected productivity gains.
According to Reuters, the idea for Project OT emerged in January during Meta's annual leadership retreat in Hawaii. Zuckerberg and his team considered a scenario in which AI agents would handle a significant portion of the day-to-day work performed by thousands of employees. People were expected to remain at the company but work in considerably smaller, "talent-dense" teams. As part of scenario planning, Meta executives considered reducing the headcount of certain divisions by up to 60%, encompassing both layoffs and transfers to new teams. The plan envisioned two waves: the first in May 2026 and the second in November, with the company additionally set to close open positions and part ways with low-performing employees.
Meta emphasized that the 60% reduction scenario applied to specific teams, not the entire company. The company also stated that Project OT was a year-long initiative focused on cutting costs, restructuring teams, and redirecting employees toward priority areas — in particular, the creation of training data for AI. After the first wave of cuts, which affected approximately 10% of staff, the second wave was canceled. One of the key elements of the transformation was to be a small-team model. While a traditional engineering team might consist of 10 to 20 people with clearly defined roles for engineers, designers, managers, and researchers, the new format envisioned only 3 to 5 people. In such teams, roles were expected to become more versatile, with some specialists consolidated into a shared pool. Instead of a multi-layered management structure, Meta sought to shift to a flatter system in which small teams would report directly to the head of a larger division.
Meta had been testing this approach as far back as 2025. One of the company's executives, Ime Archibong, described it this way: "In basketball, running a fast break lets you take more shots — and better ones. We expect the same from AI tools: they allow you to explore more ideas with less effort and greater precision." An internal Meta document also noted that traditional roles such as product designer and engineer could gradually disappear, with participants in such teams receiving the universal title of developer. By June, at least 11 Meta divisions — including engineering and research teams — had already adopted the small-team model. In parallel, Meta launched an HR tool to identify so-called irreplaceable employees. An internal document outlined the concept of the 10X Performer — an employee who, with the help of AI, could potentially carry out work that previously required an entire team. According to Reuters, Meta planned to direct a portion of the savings from the cuts toward large compensation packages designed to attract and retain top AI talent. Zuckerberg had previously predicted that within the next five years, billions of people would be using personal AI agents.