26 August 2026

Meta scrapped mass layoff plan after AI agents failed and staff rebelled

First reported

The Decoder ran this on .

  • Meta's internal Project OT aimed to shrink many teams by up to 60 percent, replacing workers with AI agents supervised by small human groups.
  • The plan collapsed in May when agent technology failed to deliver promised productivity gains, forcing CEO Mark Zuckerberg to cancel a second layoff wave.

Reported by The Decoder