Meta faces lawsuit over alleged AI-driven layoffs

Twenty-six Meta employees have sued the company, alleging it used artificial intelligence to help decide who would be cut in a spring layoff affecting 8,000 employees, or about 10% of the workforce. The lawsuit, filed Monday in Oakland, California, claims the system disproportionately targeted workers who took medical or family leave or sought disability accommodations.

According to the 71-page complaint, Meta used AI systems to “score, rank, and select employees” for layoffs instead of relying on managers' judgment. The suit says those systems drew on performance ratings, calibration scores, productivity, and output metrics—measures that can disadvantage employees on protected leave and workers with disabilities.

The complaint argues Meta “did not pause the system for the individualized, leave- and accommodation-neutral review that the law requires.” It says all 26 employees involved in the case either took or requested protected leave, or requested or received a reasonable accommodation for disability.

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Meta disputes the allegations. A company spokesperson told multiple U.S. outlets, including CNBC and The Verge, that “Workforce management and organizational decisions were and are made by people, not AI.” The spokesperson also told CNBC that the “claims lack merit and are not based on facts.” Meta did not immediately respond to AFP’s request for comment.

The cuts come as Meta ramps up spending on its AI push. The company plans to invest up to $145 billion in AI infrastructure this year, nearly double last year’s figure.