A group of 26 current and former Meta employees filed a lawsuit Monday evening in federal court in Oakland, California, alleging the company used artificial intelligence in discriminatory layoffs. The plaintiffs claim Meta’s AI-based tools unfairly targeted protected workers during its May reduction of about 8,000 jobs, part of a broader restructuring to prioritize AI initiatives, according to the complaint.
The 26 plaintiffs, identified as current and former Meta employees, allege in their complaint filed Monday evening in the U.S. District Court for the Northern District of California that Meta’s AI-driven layoff system disproportionately targeted workers in protected categories. The affected employees were notified in May that their positions would be eliminated, with termination dates beginning July 22, according to court records.
The lawsuit claims that employees with disabilities, medical conditions, pregnancy, or those on medical, parental, or family leave were unfairly penalized during the company’s May reduction of about 8,000 jobs, which represented roughly 10% of Meta’s workforce.
The complaint asserts that Meta used “a constellation of internal artificial-intelligence systems” to score, rank, and select employees for termination instead of relying on managerial discretion. Among the tools cited is “Metamate,” an internal large language model AI assistant, and an employee-trained “second brain” system that analyzed workers’ communications and documents to contribute to termination rankings. The lawsuit further alleges that productivity scores were derived from extensive monitoring of employee activity, including keystrokes, mouse movements, screen content, emails, browser history, and messaging. Internal dashboards tracking employees’ use of Meta’s AI tools, referred to as AI token consumption, were reportedly used as proxies for productivity and factored into layoff decisions.
Plaintiffs contend that these activity-based metrics systematically disadvantaged employees on protected leave because their recorded activity was lower during approved absences. The complaint states that Meta’s AI systems did not adjust for legally protected leave, effectively penalizing employees for exercising their rights under the Americans with Disabilities Act (ADA), Family and Medical Leave Act (FMLA), and Pregnancy Discrimination Act. When Meta was allegedly made aware of the disproportionate impact on workers taking medical or family leave, the lawsuit claims the company did not pause or substantially modify the AI systems to address potential bias.
The plaintiffs also allege that the monitoring program, which captured keystrokes, browser data, and messaging activity, was rolled out in April through a secondary internal group rather than official company channels, and that many employees did not receive acknowledgment or consent options prior to implementation. In addition to federal claims under the ADA, FMLA, and Pregnancy Discrimination Act, the lawsuit cites violations of related state anti-discrimination and anti-retaliation laws, including recent legal requirements in California and New York City mandating bias audits of automated employment decision tools.
Meta has denied the allegations, with a company spokesperson stating, “These claims lack merit and are not based on facts. Workforce management and organizational decisions were and are made by people, not AI.” According to Meta, human decision-makers, not AI systems, were responsible for organizational decisions, including layoffs. The company’s statement suggests that any AI or software tools used were supportive rather than determinative in the layoff process and rejects the characterization of the process as discriminatory against disabled workers or those on protected leave. Meta indicated it will vigorously defend the layoff decisions and contest the lawsuit’s claims.
The 26 employees are seeking a court injunction to block their scheduled terminations starting July 22 while their claims proceed. They are pursuing individual claims in arbitration but filed the federal lawsuit to challenge the overall AI-based layoff selection process and seek broader remedies. Among their requests is an independent audit of the algorithmic systems and procedures Meta used to assess employees for layoffs, aimed at uncovering potential bias and discriminatory impact.
Legal experts and media outlets have described the lawsuit as a novel case, likely the first major U.S. legal challenge directly targeting the use of artificial intelligence in corporate layoff decisions. The case underscores growing concerns about automated workplace decision-making, including the use of productivity monitoring and AI metrics, and the potential for legal disputes over algorithmic discrimination in employment.
Meta’s May layoffs were part of a broader restructuring effort to reduce staff by approximately 10% and close about 6,000 open positions as the company shifts focus toward AI initiatives. The ongoing litigation in Oakland federal court may influence how companies deploy AI tools in workforce management and how courts evaluate the legality of automated employment decisions in the future.
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