Meta CEO Mark Zuckerberg acknowledges AI restructuring errors

Meta chief executive Mark Zuckerberg said the company made mistakes in its recent AI‑focused restructuring. In an internal memo collected by Reuters, Zuckerberg admitted that the large‑scale reorganisation that began in May – which involved a 10% global workforce reduction and the relocation of about 7,000 employees to AI projects – did not go as planned. He said Meta is now working to stabilise the organisation and will not conduct another major lay‑off before the end of the year.

The memo notes that the new AI engineering division was built with a flat hierarchy, giving some managers responsibility for up to 50 staff, creating concerns about oversight. Meta plans to narrow management layers, increase funding for team‑building activities, and host a large hackathon in July to foster collaboration. The move is part of Zuckerberg’s broader strategy of investing heavily in AI, a trend seen across many large US tech firms.

Industry surveys cited in the memo show that almost all senior leaders expect AI integration to trigger further workforce cuts over the next two years, while only about a third believe their current staff can optimally combine human and machine capabilities.