Twenty-six current and former Meta Platforms employees have filed a lawsuit accusing the tech giant of using AI-powered software that disproportionately targeted workers with disabilities or those who took medical leave when selecting employees for mass layoffs, according to a Reuters report published Tuesday, July 14.
The lawsuit, filed late Monday in federal court in Oakland, California, alleges that Meta relied on factors such as productivity and AI token usage when it cut thousands of jobs earlier this year, a method that disadvantaged employees who missed work due to medical conditions or caregiving responsibilities, per the outlet.
The plaintiffs were notified in May that their positions would be eliminated starting July 22. They are seeking a preliminary ruling blocking Meta from completing the layoffs while their claims proceed through private arbitration, according to the report. The workers argue that Meta’s employment agreements require individual arbitration of workplace disputes but do not cover requests for temporary relief.
A Meta spokesperson denied the allegations in a statement Tuesday. “Workforce management and organizational decisions were and are made by people, not AI,” the spokesperson said, according to the article.
Per the outlet, the case appears to be the first lawsuit against a major U.S. company challenging the alleged use of AI in conducting layoffs.
Meta cut about 10% of its global workforce in May, eliminating nearly 8,000 jobs. Reuters previously reported the company was planning additional cuts later this year, though Meta CEO Mark Zuckerberg has since said he does not expect any further company-wide layoffs in 2026. The cuts are part of a broader overhaul as Meta ramps up its AI investments and shifts toward AI agents in both its products and internal operations, according to the report.
Rod Lamkey – CNP / MEGA
According to the article, the 26 plaintiffs, who filed the lawsuit anonymously, accuse Meta of violating federal and state laws barring discrimination or retaliation against employees with disabilities, those on medical leave or pregnant workers. They also allege Meta failed to test its AI systems for bias, in violation of recently enacted California and New York City laws, per the lawsuit.
The plaintiffs are based in six states, including California and New York, as well as Washington, D.C., the outlet reported.
According to the complaint, Meta used several internal AI-assisted tools to score and rank employees on a termination list, including “Metamate,” a large language model assistant; an employee-trained “second brain” that tracked workers’ communications and documents; and a productivity score generated by scanning keystrokes, screen content, emails and browser history, per the report.