Meta CEO Mark Zuckerberg conceded at an internal town hall this week that the company’s sweeping restructuring had not delivered the expected results. According to a report by Reuters, Zuckerberg said the company’s AI agents had not progressed as quickly as anticipated, and that top executives had ‘miscalculated’ the timing of the changes. The restarting announced earlier this year, included laying off about 8,000 employees—roughly 10% of Meta’s global workforce—and reassigning 7,000 staffers to AI-focused teams. The moves were intended to fund Meta’s massive AI infrastructure investments, projected to reach $145 billion in 2026, but have sparked employee pushback and morale concerns.

Slower than expected AI progress

Mark Zuckerberg has also admitted that the “trajectory of agentic development over at least the last four months hasn’t really accelerated in the way that we expected.” He added that while executives were “super optimistic” about tools like Claude Code from Anthropic earlier this year, the company’s bets on AI agents had not yet paid off. Despite the setbacks, Meta CEO Mark Zuckerberg told employees he expects Meta to begin seeing more significant benefits from its AI investments within three to six months.

Mouse tracking software review

Meta’s Chief Technology Officer Andrew Bosworth also addressed concerns about the company’s controversial mouse-tracking software, which had been paused after reports of sensitive data exposure. Bosworth said a review indicated that no employee data was included in AI training.If reinstated, the program will operate on an opt-in basis, a reversal from April when U.S. employees were told there was no way to opt out. Bosworth said: “For people who are comfortable, that’s great, they can contribute to this kind of great human survey. To people who are not, it is not an issue.”

Meta CTO Andrew Bosworth admitted company did an ‘atrocious’ job by rolling out its new Applied AI division

Recently, Meta CTO Andrew Bosworth admitted in a memo to employees that the company did an ‘atrocious’ job by rolling out its new Applied AI division, as reported by Wired. The unit, which was formed in March this year with 6,500 engineers and product managers, was meant to accelerate Meta’s generative AI projects. Instead, workers descend the transition as chaotic, with some calling it ‘a gulag’. Andrew Bosworth added that the company undermined trust by failing to explain the vision clearly by destabilising teams via rapid restructuring. The report further added that Bosworth pledged to rekindle a more cheerful internal culture by improving communication, career growth opportunities, and even office perks. Managers will be capped at 20 direct reports, employees will have access to “AI coaching” tools, and Meta will invest in microkitchens, travel budgets, and social events to boost morale. “I hope we can rekindle the best of the culture we joined,” Bosworth wrote.Meta laid off about 10% of its workforce, or roughly 8,000 employees in May, as part of its ongoing restructuring. The job cuts, combined with broader AI-related organisational changes, have contributed to growing internal unrest across the company.