After spending much of the past year eliminating management layers to build a leaner, AI-driven organization, Meta is now quietly bringing some managers back.
The technology giant has begun asking individual contributors in its Applied AI (AAI) division whether they would like to transition back into manager roles as part of a recent internal reorganization, according to Business Insider, which cited four people familiar with the matter. The move is reportedly voluntary and represents a notable shift for a company that has aggressively championed flatter organizational structures.
The decision highlights the challenge companies face in balancing efficiency, rapid AI development, and workforce coordination.
AAI is a newly created engineering division launched in 2026 to help bridge the gap between Meta’s AI research and product execution. The group trains AI models and accelerates their deployment across the company’s products.
Earlier this year, Meta reassigned roughly 7,000 employees to the unit, including some who had previously held manager positions before moving into individual contributor roles.
Meta did not immediately respond to Fortune‘s request for comment.
Meta’s push to flatten its workforce
The move marks a partial reversal of a broader restructuring effort that has defined much of Meta’s strategy over the past year.
As CEO Mark Zuckerberg accelerated the company’s transition toward what executives have described as a more AI-native future, Meta reduced management layers and emphasized smaller, faster-moving teams. The company argued that flatter structures would improve decision-making, reduce bureaucracy, and help offset the rising cost of its massive AI investments.
The current retooling 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 maneuver it is now selectively undoing.
That approach hardened in 2026. In March, Fortune reported that analysts expected Zuckerberg to help drive a broader “cascade” of AI-related layoffs across the tech sector. Two months later, Meta cut about 10% 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 reorganization has not been without friction. Earlier this year, Wired reported employee frustration over the rollout of the AAI division, 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% from the prior quarter. The figure includes approximately 8,000 employees affected by the company’s May workforce reductions, according to its second-quarter 2026 earnings report.
AI spending continues to accelerate
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,” Zuckerberg said.
Meta reported second-quarter revenue of $60.8 billion, a 28% increase from a year earlier. At the same time, total expenses climbed 55% to $42 billion as the company continued investing heavily in AI infrastructure and absorbed costs tied to the workforce reductions.
The company’s latest organizational 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.
