A technology company built around the future of artificial intelligence is now facing a legal battle over how that same technology was allegedly used to make life-changing decisions about its own employees.
Meta Platforms is facing a lawsuit from 26 former employees who claim the company’s AI-driven layoff process unfairly targeted workers with medical conditions, disabilities, and those who had taken protected medical leave.
The lawsuit, filed in a federal court in Oakland, California, alleges that Meta relied on AI-assisted systems and workplace performance data to decide which employees would lose their jobs during its latest round of workforce reductions.
The affected workers claim the system failed to consider personal circumstances, arguing that employees who missed work because of health issues, disabilities, or family responsibilities were placed at a disadvantage.
According to the complaint, the employees were informed in May that their positions would be eliminated from July 22. They are now asking the court to temporarily stop the layoffs while they pursue their claims through private arbitration.
The case has drawn attention because it is believed to be one of the first legal challenges against a major US company over allegations that artificial intelligence played a role in deciding mass layoffs.
Meta, however, has denied the accusations. A company spokesperson said workforce and organisational decisions were made by people, not AI, rejecting claims that automated systems were responsible for selecting employees for termination.
The lawsuit comes after Meta announced plans to cut about 10 per cent of its global workforce, affecting nearly 8,000 employees, as part of a broader restructuring strategy focused on expanding its artificial intelligence investments.
The plaintiffs allege that Meta used several AI-assisted tools to rank employees, including systems that analysed productivity data, workplace activity, communications, and other digital records. They claim these tools were not properly tested for possible bias.
The workers are accusing Meta of violating laws designed to protect employees from discrimination based on disability, medical leave, and pregnancy-related protections.
As companies worldwide increasingly turn to artificial intelligence to improve decision-making, the lawsuit raises a bigger question: Can machines be trusted with decisions that directly affect people’s careers, livelihoods, and futures?
The outcome of the case could become a major test for how businesses use AI in the workplace.
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