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A.I.

Meta is being sued over claims its AI systems targeted disabled workers for layoffs

The former employees say Meta assembled its termination list using a set of internal AI systems rather than direct managerial review

By Cris Tolomia·2 min read·Updated July 14, 2026
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a Meta logo on top of a glassy building

Photo by Laurent Hou/Hans Lucas /AFP via Getty Images

Meta $META faces a lawsuit from 26 employees who claim the company used AI-powered tools to select workers with disabilities, medical conditions, or approved family leave for mass layoffs. It appears to be the first such case against a major U.S. company challenging the use of AI in a layoff process, according to Reuters.

The plaintiffs filed the suit Monday in federal court in Oakland, California. All 26 workers were notified in May that their jobs would be eliminated starting July 22, and they are seeking a court order blocking those terminations while they pursue their individual claims in arbitration. The plaintiffs filed anonymously and come from six states, including California, New York, Florida, Illinois, and Pennsylvania, as well as Washington, D.C.

According to the complaint, Meta assembled its termination list using a set of internal AI systems rather than direct managerial review. Among the tools cited in the complaint were "Metamate," an internal AI assistant built on a large language model; so-called "second brain" agents trained on individual employees' files and communications; and a productivity scoring system that drew on data captured from keystrokes, screen activity, emails, and browsing. Because employees on protected leave had less activity for the systems to measure, the plaintiffs contend, the AI tools effectively penalized them by producing lower scores that pushed them onto the termination list.

"Meta did not assemble the termination list through the considered judgment of managers who knew the work," the plaintiffs write in their 71-page complaint, according to Courthouse News.

The lawsuit accuses Meta of violating the Americans with Disabilities Act, the Family and Medical Leave Act, the Pregnancy Discrimination Act, and related state laws. The plaintiffs also allege Meta failed to test its AI systems for bias, in violation of recently adopted laws in California and New York City.

Meta pushed back on the allegations. A company spokesperson issued a statement saying, "These claims lack merit and are not based on facts. Workforce management and organizational decisions were and are made by people, not AI."

The May cuts, which eliminated roughly 8,000 positions — equivalent to about 10% of Meta's worldwide headcount — were presented by the company as part of a sweeping reorganization tied to its accelerating investment in artificial intelligence. Simultaneously, Meta moved thousands of employees into newly formed teams dedicated to AI work, as part of its stated effort to reorient the company around the technology. Chief Executive Officer Mark Zuckerberg has since said he does not expect additional companywide layoffs this year.

The case has been assigned to U.S. District Judge William Orrick, according to Courthouse News.

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