Meta's CTO Drives AI-Powered Workforce Overhaul to Create Large, Manager-Lite Teams

Stock News
05/26

Meta Platforms, Inc.'s (META.US) Chief Technology Officer, Andrew Bosworth, is spearheading a new initiative to reshape the company's workforce system using artificial intelligence (AI). Known for his outspoken nature and forceful push on Meta's technical direction, particularly in AI and infrastructure, Bosworth has reportedly not shown compromise or offered apologies when employees request to exit certain projects. In response to employee concerns about privacy regarding device monitoring, he has advised staff not to use personal email on company devices.

Previously reported, Meta has been installing new tracking software on US employees' computers to capture mouse movements, clicks, and keyboard inputs to train its AI models. Internal memos indicate this is part of a broader plan to develop AI agents capable of autonomously performing work tasks. One memo revealed the tool, named the "Model Capability Program," will operate on work-related applications and websites, periodically capturing screen content. This aims to improve Meta's AI models in simulating human-computer interactions, such as drop-down menu selections and keyboard shortcut operations.

In a memo to employees, Bosworth stated the company would enhance internal data collection as part of its "AI for Work" initiative—now renamed the "Agent Transformation Accelerator." Currently, Bosworth leads Meta's strategy for next-generation computing platforms and consumer hardware, including projects like Quest, Horizon, and the Meta glasses portfolio.

Bosworth told employees in an internal memo: "As we scale our efforts to build AI agents that can perform work in place of employees, our roles will shift to guiding, reviewing, and helping them improve." He added, "We have already seen tasks that once took hours now completed in minutes. Soon, for some tasks, we may not need to be involved at all." It is reported that he aims to build large teams with few or no managers.

Furthermore, Bosworth plans to eliminate traditional planning documents and written proposal processes, preferring teams to directly build and test functional prototypes.

Last week, Meta formally initiated a global workforce reduction of approximately 10%, affecting about 8,000 people. This is part of the company's restructuring to improve efficiency, cut costs, and increase AI investment. Beyond direct layoffs, Meta will undergo a disruptive organizational restructuring, implementing flatter management by significantly reducing managerial positions.

Meta's Chief Human Resources Officer, Janelle Gale, noted in a memo that many department leaders incorporated "AI-native design principles" when designing new structures. The company will rely on leaner, more autonomous small-team models for faster response times.

In this "full transition to AI" structural adjustment, in addition to employees facing job loss, Meta plans to transfer up to 7,000 employees to new projects related to AI workflows, with some reassignments already underway. Combining layoffs and transfers, this restructuring will directly impact approximately 20% of Meta's workforce, while the company has also closed an additional 6,000 open positions.

Meta's series of actions primarily aim to save on labor costs amid surging AI capital expenditures. On April 29, Meta reported first-quarter revenue of $56.31 billion, a 33% year-over-year increase, with advertising revenue rising 33% to $55.02 billion. Operating profit was $22.87 billion, up 30%. The company forecasts second-quarter revenue between $58 billion and $61 billion.

Concurrently, Meta raised its full-year 2026 capital expenditure forecast to a range of $125 billion to $145 billion, increasing both the upper and lower bounds by $10 billion. The company stated the increase is mainly due to expected higher component costs this year and additional data center costs to support future capacity.

Despite significant revenue growth boosted by AI-driven targeted advertising effectiveness, the company continues to streamline its workforce to "offset other investments." Gale framed the layoffs in the memo as an action to "improve company efficiency," stating it was to "offset the other investments we are making."

Notably, this is not Meta's first large-scale workforce reduction. Since laying off approximately 11,000 people in November 2022, Meta has conducted multiple rounds of cuts. This latest action, affecting about 8,000 people, is the largest adjustment since the "Year of Efficiency" in 2023.

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