Meta faces record-low morale over its AI restructuring as its new Applied AI unit chafes and Zuckerberg concedes missteps

by | Jun 14, 2026 | Latest E-commerce News & Updates

Meta is grappling with low employee morale over its AI-focused restructuring, including an expletive-laden outburst that interrupted a livestreamed all-hands this week, according to WIRED. Much of the discontent centers on Applied AI, a roughly 6,500-person unit formed in March whose engineers say they were effectively drafted into menial work generating coding problems and puzzles to train AI models, on top of last month's layoff of 8,000 staff and a petition against monitoring employees' keystrokes for AI training data. In a Friday memo, Zuckerberg acknowledged the changes had caused distress and that Meta had “made mistakes,” vowing no more mass layoffs this year and promising fixes like capping team sizes and restoring assigned desks, while CPO Chris Cox separately described the recent stretch as brutal.

Paul Drecksler is the founder and editor of Shopifreaks, covering the most important stories in e-commerce.

Companies: Meta

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