A group of Meta employees has filed a lawsuit claiming the company used AI for layoffs, disproportionately affecting those on leave or with disabilities.
Twenty-six employees of Meta have initiated legal action against the company, alleging that it utilized AI systems to determine which workers would be laid off. The lawsuit claims that the algorithms unfairly targeted employees on maternity, family, or medical leave, as well as those with disabilities.
The complaint was lodged on July 13 in the Northern District of California, with the plaintiffs opting to remain anonymous due to concerns over retaliation from the employer.
These employees are part of the approximately 8,000 individuals affected by Meta's decision to cut its workforce by around 10%. Layoff notifications were sent out on May 20, with the majority set to take effect on July 22.
“Meta created the layoff list not based on informed decisions from managers familiar with employee performance,” the lawsuit asserts.
The plaintiffs accuse Meta of employing various internal AI tools to evaluate, rank, and select employees for layoffs. These tools included the corporate assistant Metamate, automated performance ratings, and metrics based on employee activities.
Leave Status Impacted Performance Metrics
The lawsuit argues that the metrics considered by Meta included work volume, activity levels, and AI tool usage, which disadvantaged employees on leave, preventing them from accumulating comparable performance metrics to their peers. Furthermore, those with disabilities may have faced additional hurdles.
The plaintiffs contend that Meta failed to adjust performance evaluations to account for legitimate absences and did not conduct proper individual reviews.
“Employees who took legally protected leave were disproportionately laid off. The system effectively penalized them for exercising their legal rights,” the lawsuit states.
One plaintiff, a researcher on maternity leave, received her layoff notice just days before giving birth, while another employee's evaluation was negatively impacted by an injury-related absence. All plaintiffs had either taken or requested legally protected leave or accommodations for disabilities in the past two years.
Meta Refutes the Claims
A representative for Meta dismissed the allegations as baseless, asserting that decisions regarding personnel management are made by people, not AI.
“Personnel management and organizational structure decisions are made by people, not AI,” the spokesperson stated.
The plaintiffs have cited laws that prohibit discrimination against pregnant individuals and those taking medical leave, arguing that Meta’s automated systems lack testing for bias. They are not pursuing class action status due to the company’s arbitration requirements.
Initially, they are requesting the court to pause the layoffs and preserve salaries, health insurance, and stock rights until the case is resolved. They also seek an independent audit of the AI systems used by Meta.
“Once the layoffs are completed, the consequences will be irreversible,” the plaintiffs' attorneys warned.
Concerns Over Employee Data Usage
In April 2026, Meta launched the Model Capability Initiative on corporate devices, which could track extensive employee activities. Although the company claimed this data would not be used for performance evaluations, the plaintiffs argue that the initiative was introduced without adequate employee consent.
Following significant employee backlash, CEO Mark Zuckerberg suspended the program in June after over 1,600 employees signed a petition against it, citing privacy violations.
Interestingly, reports have emerged that tech companies increasingly cite AI as a reason for workforce reductions, even amid ongoing business growth, raising questions about the motivations behind such layoffs.
