Technology 6 min read By Callum Montgomery
Meta Rebuilds Management Ranks After AI-Driven Flattening
Meta has begun asking individual contributors in its Applied AI division to return to manager roles, a partial reversal of the layoffs and flattening that defined its AI-efficiency push.
Meta is quietly rebuilding parts of the management structure it spent much of the past year dismantling, after an aggressive push to flatten the company and redirect resources towards artificial intelligence. The technology giant has started asking individual contributors in its Applied AI division whether they would like to move back into manager roles as part of a recent internal reorganisation, according to reports citing four people familiar with the matter. The move is voluntary and marks a notable shift for a company that has championed leaner, faster-moving teams.
The Applied AI unit is a newly created engineering division launched in 2026 to bridge the gap between Meta's AI research and its product execution. It trains AI models and accelerates their deployment across the company's apps and services. Earlier this year, Meta reassigned roughly 7,000 employees to the division, including some who had previously held manager positions before moving into individual contributor roles. Meta did not immediately respond to a request for comment.
The decision highlights the difficulty companies face in balancing efficiency, rapid AI development and workforce coordination. While AI may automate certain tasks and strip out layers of bureaucracy, building and deploying advanced AI systems at scale still requires human leadership, oversight and coordination. Meta's latest organisational shift suggests that removing management entirely is not straightforward when the work involves complex, fast-moving technology programmes.
The retooling is a partial reversal of a broader restructuring effort that has defined Meta's strategy over the past year. As chief executive Mark Zuckerberg accelerated the company's transition towards what executives have described as a more AI-native future, Meta reduced management layers and emphasised smaller teams. The company argued that flatter structures would improve decision-making, reduce bureaucracy and help offset the rising cost of its massive AI investments.
It is not the first time Meta has rewired its management ranks in the name of speed. In 2023, during what Zuckerberg branded his «year of efficiency», the company asked many managers and directors to move into individual contributor jobs or leave in a process it internally called «flattening» — the same manoeuvre it is now selectively undoing. That approach hardened in 2026. In March, analysts expected Zuckerberg to help drive a broader «cascade» of AI-related layoffs across the technology sector. Two months later, Meta cut about 10 per cent of its workforce — roughly 8,000 employees — and scrapped plans to fill 6,000 open positions as part of a sweeping efficiency initiative.
The layoffs disproportionately affected managers and were intended to simplify reporting structures while freeing up resources for AI development. The restructuring mirrored moves across the technology sector, where companies including Amazon, Microsoft and Intel have reduced headcount while increasing investment in AI infrastructure and automation.
Meta's reorganisation has not been without friction. Earlier this year, employee frustration over the rollout of the Applied AI division was reported, and some workers reassigned to the group were later given the option to pursue other opportunities within the company. In July, 26 Meta employees sued the company, alleging it had used internal AI systems and activity-monitoring data to disproportionately target workers on medical, parental or family leave in the May cuts. Meta ended the second quarter with 75,472 employees, down 3 per cent from the prior quarter. The figure includes approximately 8,000 employees affected by the May workforce reductions, according to its second-quarter 2026 earnings report.
The management changes come as Meta continues to pour billions into AI. During the company's second-quarter earnings call, Zuckerberg said AI investments are increasingly shaping every major part of Meta's business, from product development to long-term growth initiatives. «I'm also excited about how AI is helping our teams speed up product development,» he said. Meta reported second-quarter revenue of $60.8 billion, a 28 per cent increase from a year earlier. At the same time, total expenses climbed 55 per cent to $42 billion as the company continued investing heavily in AI infrastructure and absorbed costs tied to the workforce reductions.
The company's latest organisational shift highlights a reality facing many technology firms: while AI may automate certain tasks and strip out layers of bureaucracy, building and deploying advanced AI systems at scale still requires human leadership, coordination and oversight.
