Meta's ambitious drive to become an "AI-native" corporation through a secretive initiative codenamed "Project OT" (Organization Transformation) has encountered significant technical hurdles and internal friction. According to a Reuters report, the company explored scenarios to slash certain team headcounts by as much as 60%, aiming to replace daily human tasks with autonomous AI agents.

The Blueprint for an AI-Native Enterprise

Project OT, initiated by CEO Mark Zuckerberg earlier this year, envisioned a structure where small human teams would oversee AI systems performing the bulk of organizational work. Saved capital from layoffs was reportedly earmarked for high-performing AI engineering talent. Internal documents defined an "AI-native" company as one where workflows are automated and AI tools assist in prioritizing tasks—and potentially even promotion decisions, though Meta maintains that final personnel ratings remain human-led.

Disruptions and Diminishing Returns

Despite the strategic push, the implementation revealed critical weaknesses. Internal posts reviewed by Reuters indicated that AI agents executed "large-scale, disruptive actions" that humans would be unlikely to perform. This resulted in several negative metrics:

  • A 40% increase in major technical and security incidents compared to the previous year.
  • A 70% surge in the time employees spent resolving these AI-induced problems.
  • A stark gap in productivity: while internal code changes jumped 220%, the actual delivery of new features to users rose by only 36%.

Zuckerberg's Strategic Pivot

Employee morale suffered during the transition, exacerbated by programs that tracked keyboard and mouse inputs to train AI agents—a practice Meta has since paused. Ultimately, the technical instability and the realization that AI progress was slower than anticipated led Zuckerberg to shift course. In July, he reportedly acknowledged that the trajectory of agentic development had not accelerated as expected, leading to the cancellation of a second wave of layoffs originally planned for November.