Tuesday, 21 July 2026 MUMBAI EDITION LIVE

US Judge Allows Meta To Proceed With Layoffs

Meta can cut 26 jobs, court may reconsider with new evidence. Employees claim AI bias.

Mumbai Alert · City Desk
Mumbai Alert · City Desk
City Desk · Mumbai Alert News · Mon, 20 July 2026 at 11:17 am
US Judge Allows Meta To Proceed With Layoffs

A US federal judge has ruled that Meta can proceed with layoffs affecting 26 employees who had sued the company. The employees had sought an emergency order to halt the layoffs, alleging they were selected using AI-powered evaluation tools that discriminated against workers with disabilities or those who had taken medical leave.

The lawsuit, filed earlier this week by 26 anonymous employees, claims Meta relied on AI-assisted systems to help determine which jobs would be eliminated during its latest workforce reduction. According to the complaint, the company used AI tools that measured productivity, AI token usage and AI adoption, which the employees allege disadvantaged workers who had taken medical leave or time off to care for family members.

US District Judge William Orrick in Oakland, California, declined to block the layoffs, which are scheduled to begin next week, but said the court 'may reconsider' its decision if the employees provide additional evidence regarding 'whether and how AI was used' in the company's workforce reduction. The judge rejected the employees' request for a temporary restraining order that would have prevented Meta from carrying out the layoffs while their claims proceed through private arbitration.

In his written order, Orrick said the employees had not shown that losing their jobs would amount to the 'irreparable harm' required for an emergency order blocking the layoffs. The company has denied wrongdoing and has said that decisions related to the layoffs were made by humans. However, the employees claim that AI systems influenced layoff decisions, and they allege that these systems continued to collect performance-related data while employees were on legally protected leave, resulting in lower AI adoption scores that were later used in layoff selection.

The plaintiffs also claim Meta used several internal AI-assisted systems to score and rank employees for layoffs, including a large language model assistant called 'Metamate', an employee-trained 'second brain' that tracked communications and documents, and a productivity score generated from scanning keystrokes, screen content, emails and browser history.

In a joint statement issued after the ruling, the employees' lawyers said, '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.' The employees remain on payroll but are locked out of company systems.

The case highlights the growing concern about the use of AI in employment decisions and the potential for bias against certain groups of workers. As companies increasingly rely on AI-powered tools to make decisions about hiring, promotion, and termination, there is a need for greater transparency and accountability in the use of these systems.

The ruling also comes as Meta and other tech companies are facing scrutiny over their use of AI and its impact on workers. Meta's CEO, Mark Zuckerberg, has admitted that the company's AI plans have fallen short of expectations, and the company is undergoing a reorganization that has resulted in significant job cuts.

The decision has significant implications for the tech industry and the use of AI in employment decisions. As the case proceeds, it will be important to watch how the court balances the need to protect workers' rights with the need for companies to make efficient business decisions.

The issue of AI bias is a complex one, and it will require careful consideration by courts, regulators, and companies to ensure that these systems are used in a fair and transparent way. For now, the 26 employees who brought the lawsuit will have to wait and see if they can provide enough evidence to convince the court to reconsider its decision.

In the broader context, this case is part of a larger conversation about the impact of technology on the workforce. As automation and AI continue to transform the economy, there will be a need for new laws and regulations to protect workers' rights and ensure that companies are using these technologies in a responsible way.

The outcome of this case will be closely watched by workers, companies, and regulators, and it will have significant implications for the future of work in the tech industry.

The use of AI in employment decisions is a growing trend, and it is likely that we will see more cases like this in the future. As the law catches up with the technology, it will be important to ensure that workers' rights are protected and that companies are using AI in a fair and transparent way.

In conclusion, the US judge's decision to allow Meta to proceed with layoffs is a significant development in the ongoing conversation about the use of AI in employment decisions. The case highlights the need for greater transparency and accountability in the use of AI-powered tools and the potential for bias against certain groups of workers. As the case proceeds, it will be important to watch how the court balances the need to protect workers' rights with the need for companies to make efficient business decisions.

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