Twenty-six Meta employees filed a lawsuit against the company, claiming it used AI systems to select workers for layoffs. They argue that the algorithms disproportionately targeted individuals on maternity, family, or medical leave, or those with special work conditions due to disabilities.

The complaint was filed on July 13 in the federal court for the Northern District of California. The plaintiffs are remaining anonymous due to fears of potential employer retaliation.

These employees are part of approximately 8,000 people Meta decided to lay off as part of a reduction of about 10% of its workforce. They received notifications on May 20, with most layoffs scheduled for July 22.

“Meta created the layoff list not based on informed decisions from managers familiar with employee performance,” the complaint states.

The plaintiffs allege that the company used a combination of internal AI-based tools to assess, rank, and select personnel. These included the corporate assistant Metamate, trained agents known as "second brains," data on AI token usage, automated performance ratings, and information on employee activities on corporate devices.

Leave May Have Affected Performance Metrics

According to the lawsuit, the metrics used considered work volume, activity levels, code changes, AI tool usage, and annual evaluation results. Employees on medical, family, or maternity leave could not accumulate these metrics on par with their working colleagues. Those with disabilities may also have had lower performance.

The plaintiffs argue that Meta did not adjust evaluations to account for legitimate periods of absence and failed to conduct individual reviews of the results.

“Employees who took legally protected leave were disproportionately laid off. The system effectively penalized them for exercising their legal rights,” the authors of the lawsuit stated.

One plaintiff, a researcher on approved leave before childbirth, received her layoff notice just two days before giving birth.

Another employee claimed his evaluation was lowered due to a break related to an injury. A manager on medical leave was included in the layoff list on the 16th day of absence.

All 26 plaintiffs had taken or requested legally protected leave or sought special work conditions due to disabilities in the previous two years.

Meta Denies the Allegations

In a comment to Reuters, a company representative called the claims unfounded.

“Personnel management and organizational structure decisions are made by people, not AI,” he stated.

The plaintiffs cited laws prohibiting discrimination against pregnant individuals, people with disabilities, and employees taking family or medical leave. They also emphasized that Meta did not test its automated systems for bias.

However, the employees are not seeking to have the dispute treated as a class action. Meta's employment agreements require them to resolve claims individually through arbitration.

Initially, the plaintiffs are asking the court to temporarily halt layoffs, maintain salaries, health insurance, stock rights, and leave status until the proceedings are concluded. They are also seeking an independent audit of the AI tools used by the company.

“Once the layoffs are completed, the consequences will be irreversible: employees will lose health insurance during pregnancy, recovery from childbirth, and treatment, unvested stock rights, and in some cases, immigration status,” their attorneys stated.

Employee Data Collected for AI Training

In April 2026, Meta began implementing the Model Capability Initiative on corporate devices. This system could record keystrokes, mouse movements, screen content, browsing history, messages, emails, and for some employees, audio, video, and location data.

The collected information was intended for training AI agents on employee work actions. At that time, company spokesperson Andy Stone assured that the data would not be used for performance evaluations or any purpose other than training models.

The plaintiffs claim that the company announced the program through a low-profile internal publication. In some departments, employees were not asked for consent and were initially not given the option to opt out.

After widespread employee dissatisfaction, Mark Zuckerberg suspended the program in June. More than 1,600 employees opposed it, signing a petition regarding privacy violations.

It is worth noting that in June, TechCrunch reported that tech companies have increasingly cited AI implementation as a reason for workforce reductions, even when their businesses continue to grow. In some cases, AI is genuinely changing work structures, while in others, it serves as a convenient explanation for restructuring, cutting costs, and addressing the consequences of overhiring during the pandemic.