Zuckerberg tells staff AI agent progress slower than expected, reorganization not clean in leaked town hall audio
Mark Zuckerberg told Meta staff that AI agent development has not accelerated as expected and that a mass restructuring has been rocky, according to a recording of an internal town hall obtained by Reuters.
AI agent progress stalls
According to a recording obtained by Reuters, Mark Zuckerberg told Meta employees at a town hall on Thursday that AI agent development over the last four months had not
. The Meta CEO added that heavy investment in AI infrastructure, which the company expects to reach up to $145 billion this year, would likely yield more noticeable returns in the next three to six months.accelerated in the way we expected
Restructuring and job cuts
The reorganization, which earlier this year saw roughly 8,000 employees laid off and 7,000 reassigned to AI groups including one called "Agent Transformation," did not go as smoothly as hoped. Zuckerberg told staff the cuts were not as "clean" as they could have been and that the bets on the new AI-focused structure
. He explained that top officials were worried about moving fast enough to adapt to industry changes. Several investigative reports have depicted the months-old AI unit as a soul-crushing environment for some engineers.haven't come to fruition yet
- Meta deploys mouse-movement recording software on US employees' computers without opt-out.
- Internal memo leaks: 10% workforce cut planned, 7,000 employees reassigned to AI projects.
- Meta suspends recording software after potential data leak investigation.
- Zuckerberg reveals AI agent development slower than expected, restructuring not clean at internal town hall.
Surveillance software and workforce unrest
At the same meeting, CTO Andrew Bosworth addressed the controversy over a mouse-movement recording program that was suspended last month after a potential data leak. Bosworth said a review found no evidence that employee data was used for AI training.
If the software is reinstated, it will be on a voluntary basis, he added. The program had originally been deployed in April without an opt-out, fueling resentment among staff already shaken by a leaked mid-May memo outlining a 10% headcount reduction and a flatter hierarchy. HR chief Janelle Gale had argued the changes would boost productivity.No employee data was used for AI training.
Spending and outlook
Meta is expected to spend up to $145 billion on AI infrastructure this year. Zuckerberg expressed confidence that the investments would pay off more meaningfully over the subsequent three to six months, even though the immediate results of the AI agent push are lagging. A company spokesperson declined to comment on the leaked recording or the details of the town hall.
