Meta Plans Workforce Cut of More Than 20% to Fund AI Spending and Streamline Operations With AI Tools

Meta’s internal “Project OT” was designed to move AI agents beyond employee assistance and into routine operational roles, potentially allowing the company to cut staffing by as much as 60% in some teams. The initiative was a significant test of whether generative AI could deliver large-scale labor savings at a major technology company, while managing risks around system reliability, cybersecurity and employee trust.

Meta abruptly paused the planned workforce reductions just hours before a second restructuring wave, according to the reports. The AI agents had produced numerous technical errors, fallen short of expected efficiency gains and been linked to recurring security incidents, fueling employee dissatisfaction. The company consequently held off on cuts of up to 60% in affected teams. The reports did not specify the exact date, number of employees involved or any associated financial target.

Meta Platforms has made generative AI, data centers and in-house chips central to its strategy in recent years while continuing to restructure high-cost divisions such as Reality Labs. Rapidly rising spending on AI infrastructure and top talent means the company must reallocate resources through layoffs and organizational changes even as it continues to grow, highlighting the cost pressures facing major technology companies as they pursue AI.

Meta reportedly cut hundreds of jobs in April 2025, affecting Reality Labs, teams working on social products including Facebook, and its recruiting organization. The company did not disclose the exact number of cuts in each division or the amount saved. During the same period, Meta eliminated some positions while raising senior executives’ pay and hiring expensive AI talent, signaling a faster shift of resources toward AI research, development and infrastructure.