Meta Faces Lawsuit Over AI-Assisted Layoffs

Plaintiffs allege Meta's AI-assisted evaluation process was discriminatory.

This article first appeared on GuruFocus. Meta Platforms (META, Financials), the company behind Facebook, Instagram and WhatsApp, has been sued by 26 former employees over claims that its recent layoff process discriminated against workers with disabilities, pregnant employees and people on approved medical leave. The case was filed in federal court in Oakland, California.

The former workers say Meta considered measures such as productivity and AI token usage when deciding who would lose their jobs. According to the complaint, those measures did not fairly account for employees whose output was affected by health conditions or protected leave. The plaintiffs come from six states and Washington, D.C.

They accuse Meta of violating federal and state laws covering disability discrimination, medical leave and pregnancy protections. Meta rejected the claims. A company spokesperson said the lawsuit lacks merit and that employment decisions were made by people, not artificial intelligence.

The case follows Meta's announcement that it would cut about 10% of its workforce, or nearly 8,000 jobs. For investors, the lawsuit adds another legal issue to watch as companies use more automated tools in workplace decisions.