Meta has partially abandoned its flat organizational structure policy within the Applied AI division. The company is now offering former managers, who were previously demoted to individual contributor roles during the unit's formation, the opportunity to return to leadership positions.

The transition to management roles is voluntary. The Applied AI division, established earlier this year, currently employs approximately 7,000 people. Many of these employees had previously held management titles before being moved to the new department, which reportedly caused internal friction.

The shift away from a flat hierarchy follows Mark Zuckerberg's 2023 'year of efficiency' initiative, which aimed to streamline operations. However, the company is now investing over $130 billion in AI infrastructure, necessitating a return to more traditional management models to oversee the rapidly growing division.

While the management structure is being adjusted within the AI department, the broader efficiency program remains in effect across other business units. CTO Andrew Bosworth previously acknowledged that the launch of the new AI division was poorly executed and promised better internal communication for future changes.