Meta sued by 26 ex-employees over alleged AI-driven layoff bias
The lawsuit, filed in the US District Court in Oakland, California, claims Meta relied on AI-assisted performance metrics —including productivity levels and AI token usage — when selecting employees for job cuts.
- Jul 14, 2026,
- Updated Jul 14, 2026 7:59 PM IST
Twenty-six former employees of Meta Platforms have sued the company, alleging that its use of artificial intelligence in evaluating workers for layoffs unfairly discriminated against employees with disabilities, those who took medical leave, and pregnant workers, news agency Reuters reported.
The lawsuit, filed in the US District Court in Oakland, California, claims Meta relied on AI-assisted performance metrics—including productivity levels and AI token usage—when selecting employees for job cuts. According to the complaint, these criteria placed workers who had taken time off due to medical conditions at a disadvantage, resulting in discriminatory layoff decisions.
The plaintiffs, who have filed the case anonymously, allege that Meta's practices violated both federal and state employment laws that prohibit discrimination and retaliation against employees with disabilities or those exercising their rights to medical leave. The group includes former employees from California, New York, the District of Columbia and three other US states.
Meta announced earlier this year that it would reduce its global workforce by about 10%, affecting nearly 8,000 employees, with the first round of layoffs beginning in May. The lawsuit argues that the evaluation process used during these workforce reductions disproportionately impacted employees who were unable to maintain the same productivity levels because of approved medical absences.
The plaintiffs contend that metrics tied to output and AI tool usage failed to account for legitimate leave taken under employment protections, leading to biased outcomes during the layoff process.
Responding to the lawsuit, a Meta spokesperson rejected the allegations, saying the claims are without merit.
"Workforce management and organizational decisions were and are made by people, not AI," the spokesperson said in a statement.
The case adds to growing scrutiny of the use of artificial intelligence in workplace decision-making, particularly as companies increasingly rely on automated tools to assess employee performance, productivity and workforce planning. Legal experts have cautioned that AI systems used in hiring, promotions or layoffs must comply with anti-discrimination laws and be regularly evaluated to ensure they do not unfairly disadvantage protected groups.
For Unparalleled coverage of India's Businesses and Economy – Subscribe to Business Today Magazine
Twenty-six former employees of Meta Platforms have sued the company, alleging that its use of artificial intelligence in evaluating workers for layoffs unfairly discriminated against employees with disabilities, those who took medical leave, and pregnant workers, news agency Reuters reported.
The lawsuit, filed in the US District Court in Oakland, California, claims Meta relied on AI-assisted performance metrics—including productivity levels and AI token usage—when selecting employees for job cuts. According to the complaint, these criteria placed workers who had taken time off due to medical conditions at a disadvantage, resulting in discriminatory layoff decisions.
The plaintiffs, who have filed the case anonymously, allege that Meta's practices violated both federal and state employment laws that prohibit discrimination and retaliation against employees with disabilities or those exercising their rights to medical leave. The group includes former employees from California, New York, the District of Columbia and three other US states.
Meta announced earlier this year that it would reduce its global workforce by about 10%, affecting nearly 8,000 employees, with the first round of layoffs beginning in May. The lawsuit argues that the evaluation process used during these workforce reductions disproportionately impacted employees who were unable to maintain the same productivity levels because of approved medical absences.
The plaintiffs contend that metrics tied to output and AI tool usage failed to account for legitimate leave taken under employment protections, leading to biased outcomes during the layoff process.
Responding to the lawsuit, a Meta spokesperson rejected the allegations, saying the claims are without merit.
"Workforce management and organizational decisions were and are made by people, not AI," the spokesperson said in a statement.
The case adds to growing scrutiny of the use of artificial intelligence in workplace decision-making, particularly as companies increasingly rely on automated tools to assess employee performance, productivity and workforce planning. Legal experts have cautioned that AI systems used in hiring, promotions or layoffs must comply with anti-discrimination laws and be regularly evaluated to ensure they do not unfairly disadvantage protected groups.
For Unparalleled coverage of India's Businesses and Economy – Subscribe to Business Today Magazine