Ex-employees sue Meta over AI-powered layoff selection software

A group of 26 former Meta Platforms employees filed a federal lawsuit in Oakland, California, on Monday accusing the technology giant of using artificial intelligence to select workers for layoffs. The plaintiffs alleged that the social media company relied on biased, automated algorithms to target vulnerable staff members during its mass redundancies. These affected individuals included workers with physical disabilities, serious medical conditions, and those on approved family and medical leave.

Reuters reported that the legal challenge appears to be the first of its kind against a major United States corporation to contest the deployment of artificial intelligence in executing corporate layoffs. According to the complaint, Meta handed over selection evaluations to AI-powered performance-tracking systems earlier this year when executing plans to eliminate approximately 10% of its global workforce, representing nearly 8,000 jobs. The plaintiffs claimed the automated systems penalised employees using highly flawed digital productivity metrics, such as tracking active keyboard engagement, file creation, and internal developer token usage.

By relying strictly on these automated numbers, the algorithms systematically flagged employees whose digital activity had naturally dropped while they were away on legally protected medical leave, pregnancy leave, or disability accommodations. The plaintiffs, who span six US states, argued that this automated selection process violated federal and state labour laws. They are seeking a preliminary court ruling to block Meta from completing the layoffs while they pursue their claims in private arbitration. Their official employment terminations are scheduled to begin on July 22, 2026.

Meta strongly rejected the allegations. A company spokesperson declared that the legal claims are without merit, stating that workforce management and organisational decisions were and continue to be made by people rather than artificial intelligence.