A U.S. judge has rejected a bid to temporarily stop Meta from laying off 26 employees who are suing the company. The workers allege they were selected for job cuts by Meta's AI-powered tools because they took medical leave or have disabilities.
U.S. District Judge William Orrick ruled the workers did not demonstrate the "irreparable harm" needed for an emergency order to block the layoffs, which are scheduled to begin July 22.
The lawsuit claims Meta used internal AI systems to score and rank employees for termination. These tools allegedly measured productivity and AI usage, disadvantaging those who were on leave. The company has denied wrongdoing, stating human decision-makers were responsible.
The case is believed to be the first major legal challenge in the U.S. against the alleged use of AI in conducting layoffs. The workers are pursuing their claims through private arbitration, a process required by their employment agreements.