Does Meta’s AI Pick Who Gets Laid Off? Lawsuit Alleges Discriminatory Practices

Jul 15, 2026 | HR Compliance News

When Meta layoffs were announced in May 2026, it looked like just another chapter in the year of Forever Layoffs. But nearly two months later, Meta’s workforce reduction has taken a grim turn. A group of 26 current and former employees has sued the Meta platform, alleging that AI-powered performance tools and productivity metrics unfairly singled out workers on medical, parental, and bereavement leave. 

According to the lawsuit, filed in Oakland, California, the Meta layoffs in 2026 used a “constellation of internal artificial intelligence systems,” including AI performance ratings and keystroke- and activity-monitoring data to figure out whom to cull from the workforce. “Meta did not assemble the termination list through the considered judgment of managers who knew the work,” reads the 71-page complaint. Instead, the 26 workers listed in the lawsuit allege the company used AI systems “to score, rank and select employees for inclusion on the list.” 

At a time when there are increasing demands for labor laws and employment rights protections against AI-based decision-making at work, the lawsuit is expected to be a key case in determining the fate of such regulations in the coming months. 

Meta AI layoffs discrimination

As the regulatory landscape continues to shift, Meta faces a new lawsuit alleging discriminatory results following AI decision-making in its layoffs. (Image: Pexels)

Allegations of Discriminatory Layoffs At Meta Emerge as AI Gets Its Time In the Spotlight

Much like other tech giants, Meta conducted mass layoffs this year, eliminating about 8,000 workers or 10% of its headcount in total. As alarming as the scale of the job cuts in the tech industry has been, in 2026, the decision to turn to layoffs was unsurprising, particularly given the company’s desire to flatten operations and invest more heavily in AI. What has been particularly alarming are the allegations that the company used AI tools to target certain categories of workers. The new Meta lawsuit has accused it of using artificial intelligence to make workplace decisions that indirectly targeted workers who utilized their protected rights for parental leave or disability accommodations. 

The lawsuit doesn’t explicitly state that workers utilizing accommodations were hand-picked for elimination, but it indicates that the keystroke and activity-monitoring data, AI token-usage dashboards, and other algorithmic rankings did not actively account for workers who may have been utilizing their benefits or away from work for personal reasons. Ranks and scores “by design, cannot be accumulated by an employee who is on protected medical or family leave, or whose output is reduced by a disability,” the lawsuit explains. 

Rather than relying on manager insights and legitimate performance results to eliminate those who did not meet the company’s expectations, the lawsuit suggests that AI systems ranked employees or various facets of their workplace operations without taking all associated factors into account. As a result, workers who took protected leave or relied on reasonable accommodations for their disability needs, as covered by the Americans with Disabilities Act (ADA), were disproportionately affected. These are very serious allegations, particularly at a time when we are finally seeing the emergence of regulations to curb AI-based decision-making. 

What Is the Goal of the Discrimination Lawsuit Against Meta?

Eight of the twenty-six plaintiffs had reportedly taken pregnancy-related leaves, while four employees had recently been on parental leave. One of the plaintiffs had also relied on caregiver and bereavement leave preceding the Meta AI layoffs, another was fired while on medical leave, and a third is believed to have received a lower rating because of his time away from work for an injury. 

With the accusations of discrimination against Meta, the lawsuit claims that the company violated multiple state and federal laws. The list includes the Family and Medical Leave Act (FMLA), the Americans with Disabilities Act (ADA), the Pregnancy Discrimination Act (PDA), and the Pregnant Workers Fairness Act (PWFA). 

Regarding the purpose of the lawsuit, the plaintiffs hope for a preliminary court ruling that could prevent Meta from finalizing the layoffs while the claims in the case are further explored. According to The Guardian, eventual retribution in the case could also include reinstatements, back pay, lost equity, benefits, and the recovery of other damages. 

The lawsuit could also serve to bring attention to accommodations for medical leave and parental leave policies in spaces where AI-based decision-making is gaining momentum, pushing lawmakers to enact more regulations. California, where the lawsuit has been filed, is one of the central US states to have regulations on the use of automated decision-making systems in employment.

Deloitte Has Similarly Been Accused of Indirectly Punishing Employees for Taking Leave from Work

AI usage aside, the discrimination lawsuit against Meta isn’t the first to point fingers at how internal ranking systems can fail to acknowledge and account for aspects like parental leave. Deloitte is also facing a class action lawsuit over allegations of putting employees who have taken parental leave at a disadvantage in comparison to those who haven’t. The lawsuit alleges that the annual performance ratings systems do not fully account for the fact that employees on parental leave or other similar leave policies may have less time to reach targets and showcase their performance in its entirety. 

The lawsuit suggests that this makes it more likely that those who use the available leave benefits could be seen as underperformers compared to colleagues, despite a history of high-quality work. As an extension of this, with raises and bonuses tied to pay, those who use their leave may also lose out on advancements in their careers. The Meta lawsuit functions on the same principle, with the added accusation that these decisions were made by AI tools.

Meta Denies Allegations that Layoffs Were Planned and Finalized By AI Systems

Meta has not publicly commented on the claims that AI guided its layoffs, however, a spokesperson told The Guardian, “These claims lack merit and are not based on facts.” They further added that “Workforce management and organizational decisions were and are made by ​people, not AI.” The company has been well-known for testing the boundaries of how much data it can access, track, and utilize without consequence, both internally and externally. The employee-monitoring tools introduced earlier this year were highly controversial, and their deployment was reportedly announced to workers more discreetly than one might expect for such a decision.

The company has had to dial back on how its AI tools misuse user data in advertising on its platforms. It also announced plans to install additional security measures on its Meta glasses after months of uproar among the general public. This isn’t the first time the company has been accused of discrimination in its layoffs, either. The company’s layoffs from last year also brought up allegations of age discrimination. These incidents, paired with the company’s AI push, suggest an ongoing disconnect between the company and the people, and where the technology is best utilized. Further progress on the lawsuit may reveal more details regarding the accusations of AI-based decision-making and potential biases against certain employee groups.

Just as the use of AI in hiring decisions has been controversial, leading to lawsuits of a similar nature more than once, so is its application in considerations of job cuts. With Meta’s “discriminatory” layoffs now a trending conversation point, we could soon see more discussion emerge surrounding the use of artificial intelligence in employment and the need for regulations to ensure that workers are safe from bias and employers from allegations suggesting bias. 

 

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