# Employee revolt and failing agents forced Meta to scrap its AI layoff plan > Source: > Published: 2026-08-26 13:09:04+00:00 # Employee revolt and failing agents forced Meta to scrap its AI layoff plan **Meta wanted to replace far more of its workforce with AI than previously known, according to Reuters, but the plan collapsed under rebellious employees and agents that failed to deliver.** Internal documents show that under the codename "Project OT," Meta planned to shrink many teams by up to 60 percent. The remaining work would fall to small, "talent-dense" groups of human staff who supervise virtual AI workers. But on the evening of May 19, just hours before the first round of layoffs, CEO Mark Zuckerberg halted the second wave that was planned for November. Several factors triggered the reversal. The agent technology never delivered the productivity gains Meta expected, investors criticized the massive AI budget, and the workforce openly revolted. When employees came to believe that tracking software logging their mouse clicks and keystrokes was training their own AI replacements, they flooded Meta's internal network with angry posts, Reuters reports. Internal sentiment dropped from 74 to 55 percent. In July, Zuckerberg [admitted](https://the-decoder.com/metas-ai-agent-push-is-moving-slower-than-zuckerberg-planned/) that the agent technology hadn't sped up as fast as he had expected. ``` AI News Without the Hype – Curated by Humans Subscribe to THE DECODER for ad-free reading, a weekly AI newsletter, our exclusive "AI Radar" frontier report six times a year, full archive access, and access to our comment section. Subscribe now ``` [Reuters](https://www.reuters.com/investigations/mark-zuckerberg-had-bold-plan-replace-meta-staff-with-ai-heres-how-it-imploded-2026-08-26/)