Meta Platforms, the parent company of Facebook, Instagram, and WhatsApp, has been hit with a federal lawsuit alleging it used artificial intelligence to unfairly target workers with disabilities, pregnant employees, and those on approved medical leave during its sweeping layoff of approximately 8,000 employees.
The lawsuit, filed in U.S. District Court in Oakland, California, represents 26 former employees from six states and Washington, D.C. The plaintiffs accuse Meta of violating federal and state laws covering disability discrimination, medical leave protections, and pregnancy accommodations.
AI Tokens as a Performance Measure
At the heart of the complaint is Meta's use of AI-assisted evaluation tools that tracked metrics such as productivity scores and AI token usage — internal measures of how much an employee's work was consumed by Meta's own AI systems. According to the lawsuit, these algorithmic assessments failed to account for workers whose output was legitimately reduced due to health conditions, pregnancy, or protected medical leave.
The plaintiffs argue this created an automated system of discrimination, where employees who were already vulnerable were systematically flagged for termination by machines that could not distinguish between low productivity and time away for legitimate medical reasons.
Meta Responds
A Meta spokesperson rejected the allegations, stating the lawsuit lacks merit and emphasizing that employment decisions were made by people, not artificial intelligence. The company maintains that its review processes included human oversight at multiple levels.
However, the case raises broader questions about the growing use of automated decision-making in corporate human resources. Meta's own documentation shows the company has invested heavily in AI-powered efficiency tracking across its workforce.
The Broader Context
This lawsuit comes amid a wave of AI-related employment litigation. Meta's May 2026 announcement that it would cut roughly 10% of its workforce — about 8,000 jobs — was part of a broader industry shift as tech companies rapidly restructure toward AI priorities. The company has simultaneously hired thousands of AI specialists, creating what critics describe as a two-tier workforce where traditional roles are sacrificed for the AI buildout.
For investors, the case adds another legal risk factor to watch. Meta's aggressive AI integration strategy has been a key driver of its stock performance, but the human cost of that transition is increasingly facing judicial scrutiny.
The plaintiffs are seeking class-action status, damages for lost wages and benefits, and an injunction preventing Meta from using what they call discriminatory AI evaluation tools in future layoffs.
Sources
- finance.yahoo.comMeta Faces Lawsuit Over AI-Assisted Layoffs — Yahoo Finance / GuruFocus
- tribune.com.pkMeta used AI to target workers with medical conditions for layoffs, lawsuit claims — The Tribune
- republicworld.comMeta Sued Over Claims AI Was Used to Target Employees With Disabilities — Republic World
- geo.tvMeta sued for using AI to pick sick, disabled workers for layoffs — Geo News




