Meta Faces Lawsuit Alleging AI Layoff System Targeted Workers With Medical Conditions

Twenty six current and former Meta employees have filed a lawsuit accusing the company of using AI-powered software to select workers for mass layoffs in a way that disproportionately affected people with disabilities or those who took medical leave.

Lawsuit Details AI-Driven Ranking System

Filed anonymously in Oakland federal court late Monday, the complaint alleges Meta used factors including productivity scores and AI token usage to rank employees for termination, disadvantaging those who missed work due to medical conditions or caregiving responsibilities. According to the filing, Meta relied on several internal AI tools, including its Metamate language model assistant, an employee-tracking “second brain” system monitoring communications and documents, and a productivity score built from keystroke, screen, email and browser activity.

Workers Seek Emergency Block on Layoffs

The plaintiffs, notified in May that their jobs would end July 22, are asking the court for a preliminary ruling to pause the layoffs while they pursue claims through private arbitration, arguing their employment agreements don’t cover requests for temporary relief. They allege violations of federal and state disability, medical leave and pregnancy discrimination laws, as well as California and New York City rules requiring bias testing of AI systems. The plaintiffs are based across six states plus Washington, D.C.

Meta Denies AI Drove the Decisions

A Meta spokesperson said the claims lack merit, stating that workforce decisions were made by people, not AI. The case appears to be the first lawsuit against a major U.S. company challenging AI’s alleged role in layoffs. Meta cut about 8,000 jobs, roughly 10% of its global workforce, in May as part of a broader push to expand AI investment, though CEO Mark Zuckerberg has said no further company-wide layoffs are expected this year.