Meta AI Layoff Lawsuit Rejected by US Judge

U.S. District Judge William Orrick in Oakland denied an emergency request by 26 Meta Platforms employees to block a planned layoff of about 8,000 workers, roughly 10% of the company’s global workforce, scheduled to begin on July 22. The workers allege that Meta used artificial‑intelligence tools – including productivity scores, AI‑token usage metrics, keystroke and activity monitoring – to select employees for termination, disproportionately affecting those on disability, medical, pregnancy or caregiving leave. They claim the AI‑driven process violated federal and state anti‑discrimination statutes. Orrick wrote that the plaintiffs had not shown the “irreparable harm” required for an injunction, allowing the layoffs to proceed while the claims are examined in private arbitration. He left open the possibility of revisiting the decision if additional evidence on AI usage is provided. Meta denies wrongdoing, stating that all workforce‑management decisions were made by humans, and has not commented on the ruling. The case is noted as the first U.S. lawsuit challenging the use of AI in large‑scale layoff decisions. “There’s no do‑over for bonding with a new baby or giving birth,” said plaintiffs’ lawyer Barbara Cowan during the hearing.