Meta faces lawsuits over AI‑driven layoffs and mistaken account deletions

Meta’s automated AI moderation systems mistakenly deleted thousands of legitimate accounts, including a Facebook and Instagram page run by English‑language teachers with nearly one million followers. Affected users received notices such as “All your information will be permanently deleted. You cannot request another review of this decision,” and compared the loss to “having your office shut down.” After public pressure, Meta restored some accounts but the incident highlighted problems with the company’s shift toward AI‑only content decisions.

In March, Meta announced a plan to give more decision‑making power to AI bots and shortly thereafter cut about 8,000 jobs, roughly 10 % of its workforce. Twenty‑six former employees have filed a lawsuit alleging the AI‑based layoff tools discriminated against workers with disabilities and those on protected medical or family leave. The suit points to internal systems such as “Metamate,” which tracked communications, keystrokes and screen content to produce productivity scores used in layoff decisions. A U.S. District Judge in California denied a temporary restraining order, allowing the layoffs to proceed while the case moves into arbitration.

Meta maintains that humans, not algorithms, made the layoff choices, and the company disputes the discrimination claims. The legal dispute could set a precedent for how companies employ AI in employment decisions and may prompt broader scrutiny of algorithmic transparency and employee rights.