A federal judge ruled Meta can cut 26 employees suing over alleged AI-driven discrimination in workforce reductions.
A U.S. judge denied a request by 26 Meta employees to halt layoffs scheduled for July 22, allowing the company to proceed while their lawsuit over AI-driven job cuts is arbitrated. The workers claim Meta’s AI tools unfairly targeted them due to disabilities or medical leave, but the judge ruled they failed to prove irreparable harm.
Meta announced in May it would cut nearly 8,000 roles, about 10% of its workforce, as part of a broader push into AI investments. The lawsuit alleges the company used AI to measure productivity and AI adoption, disadvantaging employees who took medical or family leave. Meta has denied wrongdoing, stating humans made final layoff decisions.
The case is the first major U.S. legal challenge against AI’s role in workforce reductions. No immediate market reaction was reported.