Meta Platforms (NASDAQ:META, XETRA:FB2A, SIX:FB) CEO Mark Zuckerberg acknowledged flaws in Meta’s broader restructuring efforts and said the company’s AI agent system was not progressing as quickly as expected during an internal hearing on Thursday, according to a recording heard by Reuters.
Zuckerberg said the restructuring, which included large-scale layoffs and a widespread redeployment of employees to tackle artificial intelligence efforts, was not as “clean” as expected and that management had misjudged the timing of the changes.
He added that Mehta’s bet on the new organizational structure “has not materialized yet.”
The comments came after Meta laid off about 10% of its global workforce in May and transferred about 7,000 employees to an AI-focused team. This change was part of a broader effort to free up resources for major investments in AI infrastructure and enable the company to benefit from the efficiency gains of AI-assisted operations.
The restructuring sparked internal backlash and raised concerns about employee morale, but Mr. Zuckerberg previously told staff he did not expect further company-wide layoffs this year.
“The trajectory of agent development over at least the last four months has not accelerated as much as we had hoped,” Zuckerberg said, referring to AI agents, automated systems designed to perform tasks on behalf of users, according to the recording.
He said internal discussions earlier this year began with concerns that Meta was not moving quickly enough to adapt. Zuckerberg added that management was “very optimistic” about tools like AI startup Anthropic’s Claude Code during the planning stages of the restructuring.
Despite slower-than-expected progress, Zuckerberg said he expects Meta to start seeing a more meaningful return on its AI investments within the next three to six months.
Meta is expected to spend up to $145 billion on AI infrastructure this year, part of broader spending by Big Tech companies focused on artificial intelligence totaling more than $700 billion.
According to Reuters, a Meta spokesperson declined to comment on the report.
Meta stock closed Thursday’s trading down 5% at about $583.
