A U.S. judge has refused to stop Meta from moving ahead with planned layoffs while 26 employees continue pursuing a lawsuit claiming the company used AI-powered tools that unfairly targeted workers with disabilities or those who had taken medical leave.
U.S. District Judge William Orrick ruled that the layoffs, scheduled to begin on July 22, could proceed while the legal claims are resolved through private arbitration. The judge said the employees did not demonstrate the “irreparable harm” required for an emergency order to block the job cuts.
Meta declined to comment on the ruling. The company has denied any wrongdoing and maintains that layoff decisions were made by human managers.
The employees’ lawyers said the court acknowledged the case raises “serious questions” about Meta’s actions. They also noted that the judge stated he may reconsider the matter “based on any additional evidence the parties provide regarding whether and how AI was used” in the layoffs.
In May, Meta informed nearly 8,000 employees, around 10% of its global workforce, that their roles would be eliminated as the company increased its investment in AI.
According to the lawsuit, Meta relied on AI tools that evaluated productivity and AI token usage, which allegedly disadvantaged employees who were absent due to medical conditions or family caregiving responsibilities. The plaintiffs also claim performance reviews partly based on AI adoption influenced layoff decisions. The case is believed to be the first against a major U.S. company challenging the alleged use of AI in workforce reductions.
The employees sought a temporary restraining order while their request for a preliminary injunction remains pending. During the hearing, their lawyers argued that workers risked losing salaries, stock options, and employer-sponsored health insurance, affecting medical care, including pregnancies and ongoing treatments.
The anonymous plaintiffs include engineers, managers, researchers, and designers. They also allege Meta used AI-assisted systems, including “Metamate,” an employee-trained “second brain,” and productivity tracking tools that monitored keystrokes, screen activity, emails, and browser history. According to the lawsuit, these systems continued tracking employees during legally protected leave, reducing their AI-related performance scores.
Also read: Viksit Workforce for a Viksit Bharat
Do Follow: The Mainstream LinkedIn | The Mainstream Facebook | The Mainstream Youtube | The Mainstream Twitter
About us:
The Mainstream is a premier platform delivering the latest updates and informed perspectives across the technology business and cyber landscape. Built on research-driven, thought leadership and original intellectual property, The Mainstream also curates summits & conferences that convene decision makers to explore how technology reshapes industries and leadership. With a growing presence in India and globally across the Middle East, Africa, ASEAN, the USA, the UK and Australia, The Mainstream carries a vision to bring the latest happenings and insights to 8.2 billion people and to place technology at the centre of conversation for leaders navigating the future.