Judge allows Meta’s AI-linked layoffs to proceed

A U.S. federal judge on Friday declined to halt layoffs at Meta Platforms ↗ 0.57% set to begin July 22, rejecting an emergency bid by 26 employees who allege the company used AI-powered tools to unfairly target workers on medical or disability leave for job cuts.

U.S. District Judge William Orrick in Oakland, California, ruled in a written order that the plaintiffs had not demonstrated the "irreparable harm" required for him to issue a temporary restraining order blocking the terminations. The case, filed Monday in federal court, is believed to be the first against a major U.S. company to challenge the alleged use of AI in conducting layoffs.aol+3

AI Systems at the Center of the Dispute

The lawsuit alleges that Meta relied on a "constellation of internal artificial-intelligence systems" to score and rank employees for a termination list. Those systems included "Metamate," a large language model assistant; an employee-trained "second brain" that tracked workers' communications and documents; and a productivity score derived from scanning keystrokes, screen content, emails, and browser history.gvwire+1

The plaintiffs claim Meta did not pause these monitoring systems while employees were on legally protected leave, causing their AI adoption scores to drop and making them more vulnerable to selection for layoffs. Meta in May notified nearly 8,000 employees — about 10% of its global workforce — that they were losing their jobs as the company invests heavily in AI.wsj+1

Meta has denied the claims. "Workforce management and organizational decisions were and are made by people, not AI," a company spokesperson said. At a hearing Thursday, Meta attorney Erin Connell told the court, "There is no evidence that AI was used to make decisions in this reduction in force".hrexecutive+1

Door Left Open for Reconsideration

While denying the emergency request, Judge Orrick acknowledged the lawsuit raises "serious questions" about Meta's conduct and indicated he could revisit the issue. A motion for a preliminary injunction — a longer-lasting temporary order — remains pending.gvwire

Lawyers for the plaintiffs said in a joint statement that the court "expressly stated that it may reconsider its determinations 'based on any additional evidence the parties provide regarding whether and how AI was used' in the reduction in force".gvwire

During Thursday's hearing, plaintiffs' attorney Barbara Cowan argued the workers faced losses beyond salary, including stock options and health insurance tied to ongoing medical care. "There's no do-over for bonding with a new baby or giving birth or having active medical treatment," Cowan told the judge. Connell countered that such damages could be recouped later if workers prevail in arbitration.gvwire

The 26 anonymous plaintiffs — engineers, managers, researchers, and designers — were notified of layoffs in May and lost access to Meta systems on May 20. Their formal terminations are scheduled for July 22, with some extending into August.gvwire