Meta announced Wednesday that it has cancelled "Project OT," an internal initiative that aimed to transform the social‑media giant into an "AI native" company. The plan, drafted in late 2023, outlined a sweeping reorganization that would have leveraged AI agents to automate routine tasks, cut middle‑management layers and, in some scenarios, reduce the workforce by roughly 25 percent or more.

According to a senior HR executive familiar with the plan, the headcount reduction would have been the most aggressive of any scenario the company considered. The executive said the projected cuts could have affected a quarter of Meta’s employees, though the exact number was never finalized. Reuters reported that Meta pulled the plug on Project OT before the company could determine how many layoffs the plan would ultimately entail.

Instead of slashing staff, Meta intends to redirect the money saved from any future reductions to high‑performing workers, particularly those with AI engineering skills. Two sources familiar with the matter told Reuters the company would allocate those funds to retain and reward top talent in AI‑related roles.

The "AI native" concept, as described in a Project OT document, envisions a workplace where AI‑ready tools and autonomous agents interact seamlessly, workflows are automated and new products are built with AI at their core. The same document notes that becoming AI native also means selling AI agents to external customers—a service Meta began offering in June.

Earlier this year, Meta launched a pilot program that broke down engineering, research and at least eight other groups into smaller, more agile units. The pilot followed the October release of an internal memo titled "AI‑Native Playbook," authored by a product‑management team member. The playbook advocated removing layers of middle management and deploying "agent‑assisted analysis" to help prioritize daily tasks.

HR staff and AI systems were slated to assist leaders in making promotion decisions under the new framework. Meta, however, pushed back on the notion that AI would drive those outcomes, stating, "Performance rating and promotion decisions were and are made by people, not AI."

Project OT’s cancellation came shortly after Meta executed a round of layoffs in May. Mark Zuckerberg reportedly called off a planned November wave of cuts, though Reuters could not determine what prompted the change of course. The decision to halt Project OT signals a pause in the company’s most aggressive AI‑driven restructuring efforts, while the broader AI‑native ambition remains on the agenda.

Analysts note that Meta’s shift underscores the tension between cost‑saving measures and the desire to stay ahead in the fast‑moving AI race. By preserving staff and focusing resources on AI talent, the company may be betting that a skilled workforce will deliver the next wave of AI products without the need for drastic headcount reductions.

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