Meta Sued Over AI-Driven Layoffs Targeting Workers on Leave

Meta is defending itself against allegations that artificial intelligence systems played a discriminatory role in selecting nearly 8,000 employees for termination during its May workforce reduction.

Twenty-six current and former Meta workers filed a federal lawsuit in California this week claiming the company's AI-driven performance evaluation systems failed to account for employees on medical leave, family leave, or those with disabilities. The result, according to the complaint, was that workers exercising legally protected rights were disproportionately chosen for layoffs.

The core allegations

The lawsuit describes Meta's use of AI to monitor employee activity, including keystroke tracking and performance metrics that allegedly penalized workers for time away from their desks. The company's May layoffs eliminated roughly 10% of its global workforce as Meta sought to offset costs associated with AI investments.

According to the complaint, Meta also deployed a "second brain" AI agent that employees were asked to train on their work patterns. The lawsuit claims some senior leaders trained these agents before taking maternity leave so the company could continue accessing their output during their absence.

One California manager cited in the suit had worked at Meta for approximately four years with consistently high performance reviews. After taking approved leave for bereavement, a health condition, and pregnancy over different periods, she filed for maternity leave in April. Weeks later, she received notice of her termination. Other plaintiffs include workers on paternity leave and employees with disabilities who were on medical leave.

Meta has categorically denied the claims. "These claims lack merit and are not based on facts," a company spokesperson said. "Workforce management and organizational decisions were and are made by people, not AI."

Why it matters

This case represents a significant test of how existing employment protections apply when algorithmic systems influence workforce decisions. If the plaintiffs can demonstrate that AI systems systematically disadvantaged workers on protected leave—even unintentionally—it could establish precedent for how companies must audit and adjust automated decision-making tools. The lawsuit arrives as tech sector layoffs accelerate: U.S. tech employers announced 139,156 job cuts from January to June, an 83% increase over the same period in 2025, according to Challenger, Gray & Christmas.

What the workers are seeking

The plaintiffs are requesting a court order preventing Meta from finalizing their layoffs and altering their compensation while the case proceeds. They're also demanding an independent audit of the "algorithmically assisted selection process" used in the workforce reduction.

The lawsuit argues that monetary damages alone cannot remedy the harm, noting that protected leave exists specifically to allow employees time to heal, care for family, and step away from work without professional penalty.

The case joins a growing body of litigation examining how AI systems intersect with civil rights and employment law. Amazon, Oracle, and Microsoft have also conducted substantial layoffs this year, though none have faced similar allegations about algorithmic discrimination in their selection processes.

These details were first reported by the Los Angeles Times.