Lawsuit claims AI-powered discrimination in recent Meta layoffs

A group of former Meta employees is suing the company for allegedly using AI systems that unfairly targeted them for layoffs.

The lawsuit alleges that Meta used improperly tested AI-powered assessment tools — including productivity scores, AI token usage tracking, and an internal LLM known as Metamate — that ranked employees for termination ahead of mass layoffs. The metrics used for the ranking unfairly scored employees that missed work or had reduced output expectations because of known medical conditions, maternal leave, and other disability-related terms, the lawsuit alleges.

"This is patently untrue. Full stop," wrote Meta spokesperson Andy Stone in a X post responding to the lawsuit's claims. "Workforce management and organizational decisions were and are made by people, not AI."

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The employees say these decisions violate federal and state anti-discrimination laws. They also argue the AI systems weren't properly screened for bias, violating California and New York City laws, specifically.

The 26 plaintiffs were terminated in a round of company-wide layoffs affecting 8,000 employees in May. At the time, Meta cited its ongoing AI investments in its announcement of the reduction in staff.

Remaining employees noted a newly launched employee tracking tool, known as the Model Capability Initiative (MCI), intended to train AI models using employee activity. They alleged the tool was collecting more data than initially advertised, prompting concern it was violating European data laws.

The former employees are seeking a preliminary decision from a California federal court that could stall their termination, currently set for July 22, while they privately arbitrate.