How Did Meta’s Attempt to Mass-Lay Off Employees and Replace Them with AI in “Project OT” Collapse?

Reuters reported that Meta’s “Project OT” sought to replace parts of its workforce with AI and carry out phased layoffs and a major reorganization by 2026.

The plan was scaled back or stalled amid employee backlash, declining morale, underwhelming AI results, and operational problems.

The episode highlights how immature technology and eroding internal trust can derail AI-led workforce cuts and business redesigns.