The initiative, known internally as the Model Capability Initiative (MCI), was launched two months ago as part of Meta's efforts to gather data that could help train artificial intelligence systems.
The programme recorded information including mouse clicks, keystrokes and other computer usage patterns from employees while they worked.
However, the initiative quickly sparked criticism from workers concerned about the extent of the monitoring, how the data would be used and whether it would be adequately protected.
Meta confirmed on Monday (22.06.26) that the programme had been suspended while the company investigated the issue.
A spokesperson told the BBC that the MCI project was "on pause for now".
They added: "We have no indication at this time that any data was improperly accessed by Meta employees."
The decision follows weeks of internal opposition to the programme.
Nearly 2,000 employees reportedly signed a petition calling for the initiative to be scrapped, arguing that the level of monitoring was excessive.
In response to the backlash, Meta had attempted to ease concerns by allowing workers to opt out of tracking for up to 30 minutes at a time.
One employee told the BBC that the measure was "just an attempt at damage control".
Another worker said many employees supported efforts to improve Meta's AI capabilities but objected to how the tracking programme was introduced.
The employee said: "The fact that tracking was forced on us, there was no consent.
"I've never seen morale here so bad."
The controversy comes as Meta continues a major push into artificial intelligence under chief executive Mark Zuckerberg.
The company has reorganised teams, carried out significant layoffs and committed up to $145 billion (£109 billion) to AI-related projects this year.
Current and former employees have reportedly expressed growing frustration over the scale of the changes.
One former staff member told the BBC the company's strategy felt like "chasing your tail".
The ex-employee said: "The direction this company is going in is depressing. Exhausting and depressing."
The pause raises fresh questions about how technology companies collect and use employee data as they race to develop increasingly advanced AI systems while balancing privacy, security and workplace trust.
