Meta Stock: The AI Revolt Inside Meta That Forced Zuckerberg to Back Down
TLDR
- Meta’s secret “Project OT” planned to cut teams by up to 60% across two waves, replacing workers with AI agents
- Zuckerberg pulled back hours before the second wave, limiting cuts to 10% of staff (~8,000 jobs)
- AI code output rose 220% year-over-year, but user-facing feature improvements were only up 36%
- A separate lawsuit claims Meta used AI tools to target employees on medical leave for layoffs
- Meta plans to spend at least $130 billion on AI infrastructure in 2026, expected to consume its full operating cash flow
Meta (META) stock rose 1.21% as the company found itself at the center of a major story about its internal AI transformation plans, a workforce lawsuit, and questions about whether its AI spending is actually paying off.
Reuters published a detailed report on August 26, based on internal documents and more than 20 interviews, revealing the full scope of what Meta had been planning behind closed doors.
The plan was called Project OT, short for Organization Transformation. It was hatched at Zuckerberg’s Hawaii compound in January during Meta’s annual leadership retreat. The vision: make Meta “AI native,” with AI agents doing much of the work currently done by human employees.
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