Meta Sued Over AI-Driven Layoffs That Allegedly Targeted Workers on Leave

Meta is facing a federal lawsuit from 26 employees who allege the company used artificial intelligence systems to identify workers for layoffs — and that those systems disproportionately targeted people on medical leave, maternity leave, or with disability accommodations.

The complaint, filed Monday in the Northern District of California, centers on Meta's workforce reduction of approximately 8,000 employees announced earlier in 2026. According to the 71-page filing first reported by The Guardian, the plaintiffs claim Meta relied on "a constellation of internal artificial intelligence systems" rather than managerial judgment to determine who would lose their jobs.

How the AI systems allegedly worked

The lawsuit describes AI-powered tools that collected performance rankings, productivity metrics, keystroke data, and activity monitoring to score and rank employees. The core allegation: these systems failed to account for time workers spent on protected leave — or in some cases, actively penalized them for it.

One plaintiff, a scientist on approved pre-birth pregnancy leave, received her termination notice two days before giving birth. An engineer said he received a lower performance rating due to time off for an injury. A manager on medical leave was laid off just 16 days into his approved time away.

"The result was that employees who took protected leaves were disproportionately selected for layoff, based on scoring that not only failed to account for their protected leaves, but in effect penalized the employees for exercising their legal rights," the complaint states.

The monitoring program and employee pushback

Meta introduced its AI employee-monitoring program earlier this year, designed to capture keystrokes, mouse activity, browser history, messages, emails, and location data from company devices. CEO Mark Zuckerberg reportedly told employees the goal was to train AI systems by observing worker behavior, according to The Information.

The company launched the program with minimal visibility — announced through an internal post by an engineer rather than senior leadership, according to the lawsuit. Some employees received no consent prompt and initially had no way to opt out.

After more than 1,600 employees signed a petition citing privacy violations, Zuckerberg paused the monitoring program in June.

Why it matters

This case arrives as employers increasingly deploy AI for workforce decisions, raising urgent questions about algorithmic bias and legal compliance. Several states — including California, Colorado, and Illinois — have recently passed laws protecting workers from automated decision systems. The lawsuit tests whether existing employment protections extend to AI-driven processes, particularly when those systems may systematically disadvantage workers exercising legal rights to medical and family leave. The outcome could establish precedent for how companies must design and audit AI tools used in employment decisions.

What the plaintiffs are seeking

The workers are asking the court to halt the layoffs while their claims proceed. They're also requesting an independent audit of Meta's AI systems to clarify why employees on leave or with disability accommodations were selected for termination. The plaintiffs seek reinstatement, back pay, lost equity, benefits, and other damages.

Terminations are scheduled to take effect July 22. The attorneys are asking the judge to allow plaintiffs to remain anonymous due to retaliation concerns and to preserve their employment status during arbitration.

A Meta spokesperson told The Guardian the claims "lack merit and are not based on facts," stating that "workforce management and organizational decisions were and are made by people, not AI."

These details were first reported by The Guardian.