On Thursday, Meta Platforms, Inc. (NASDAQ:META) CEO Mark Zuckerberg reportedly told employees that the company’s AI-driven reorganization has not delivered the rapid progress executives anticipated.

Zuckerberg Says Meta’s AI Agent Progress Has Been Slower Than Expected

Zuckerberg made the remarks during an internal town hall, according to a recording reviewed by Reuters, admitting that Meta’s expectations for AI agents have not materialized as quickly as leadership had forecast.

The “trajectory of the agentic development over at least the last four months hasn’t really accelerated in the way that we expected,” Zuckerberg said.

He added that the company’s bets on its new organizational structure “haven’t come to fruition yet.”

Meta did not immediately respond to Benzinga’s request for comments.

Meta’s AI Restructuring Included Layoffs And Team Reassignments

In May, Meta cut about 10% of its global workforce and reassigned roughly 7,000 employees to AI-focused teams as part of a broader restructuring designed to support its growing investments in artificial intelligence.

Zuckerberg said the reorganization did not unfold as “clean” as planned, acknowledging that executives misjudged the timing of the changes.

He told employees that leadership had been “super optimistic” earlier this year, believing advances in AI tools—including coding assistants such as Anthropic’s Claude Code—would arrive faster.

Executives feared Meta risked falling behind competitors if it did not move aggressively, he said.

Despite the slower-than-expected progress, Zuckerberg said he expects Meta to begin seeing more meaningful returns from its AI investments within the next three to six months.

Meta Addresses Employee Monitoring Concerns

During the same town hall, Meta Chief Technology Officer Andrew Bosworth also addressed concerns over the company’s employee activity-tracking software, which was paused last month after a review was launched into a potential exposure of sensitive data.

Bosworth said the investigation found no employee data had been used to train AI models. If the program is reinstated, participation will be voluntary.

“For people who are comfortable, that’s great… To people who are not, it is not an issue,” Bosworth told employees, noting the program would operate on an opt-in basis if it returns.

Price Action: Meta shares closed Thursday down 4.90% at $582.90 and edged up 0.34% to $584.88 in after-hours trading, according to Benzinga Pro.

According to Benzinga Edge Rankings, Meta scores in the 88th percentile for growth, though the stock has posted negative medium- and long-term returns while maintaining a positive short-term price trend.

Disclaimer: This content was partially produced with the help of AI tools and was reviewed and published by Benzinga editors.

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