Meta's AI-Driven 'Project OT' Cut 8,000 Jobs; Aggressive Second Wave Cancelled After AI Underperformed

NewsData.io · United States · Aug 28, 2026

Meta laid off roughly 8,000 employees (10% of staff) in May 2026 as part of a confidential initiative called Project OT, which explored replacing routine teams with AI agents — in some cases targeting headcount reductions of up to 60%. A planned November second wave was cancelled after AI agents delivered poor results and an internal surveillance program (keystroke and mouse tracking used to train AI replacements) triggered an employee backlash, including a petition signed by over 1,600 workers. The episode is a significant real-world data point for staffing firms: enterprise clients pursuing aggressive AI-for-headcount substitution strategies face operational, morale, and reputational risks that may slow or reverse workforce reduction plans. Meta says no further company-wide cuts are expected in 2026.