Meta Layoff Lawsuit Raises Questions About AI in Workforce Decisions
A group of 26 Meta employees has filed a lawsuit in federal court in Oakland, California, alleging the company used artificial intelligence and workplace activity data to help determine who would be laid off. The workers are part of a broader round of 8,000 job cuts announced by Meta in May, representing about 10 per cent of its workforce.
The plaintiffs say Meta’s process relied on internal AI systems, keystroke and activity-monitoring data, token-usage dashboards and algorithmically assisted performance rankings. According to the complaint, those measures disadvantaged employees who had taken protected medical, parental or family leave, or who had reduced output related to a disability. The lawsuit argues that such workers could not accumulate the same scores while away from work and that Meta failed to conduct the individualized, leave-neutral review required by law.
All 26 employees remain on Meta’s payroll for now, with separations scheduled to begin July 22. The group includes workers who took maternity, pregnancy-related, parental, caregiving and medical leave. The complaint alleges violations of several federal and state protections, including the Family and Medical Leave Act, the Americans with Disabilities Act, the Pregnancy Discrimination Act and the Pregnant Workers Fairness Act.
Meta denies the allegations. In a statement, the company said the claims “lack merit” and are “not based on facts,” adding that workforce and organizational decisions “were and are made by people, not AI.”
Lawyers for the employees say they are seeking to preserve the status quo while arbitration proceeds. They argue that final termination could lead to lost health coverage, forfeited equity, reduced leave rights and potential immigration consequences. The case adds to growing scrutiny of how companies use automated tools in employment decisions during restructuring and cost-cutting efforts across industries today nationwide.