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Meta layoffs: US judge rejects bid to halt AI discrimination job cuts

A US judge has ruled that Meta can proceed with layoffs impacting 8,000 employees, despite disputes over AI usage in selecting job cuts.

By Project Chintan Newsroom
19 July 2026 · 3 min read
Meta layoffs: US judge rejects bid to halt AI discrimination job cuts
Meta
Meta (Reuters)

A US judge has refused to temporarily stop Meta from laying off workers who claim they were unfairly selected for job cuts by the company's AI tools, according to a Reuters report. US District Judge William Orrick on Friday ruled that he would not stop Meta from carrying out its layoffs starting on July 22, even as the merits of the workers' legal claims are decided through private arbitration.

The judge noted that the workers were not able to show that losing their jobs at Meta amounted to "irreparable harm" that would require him to issue an emergency order blocking the layoffs.

The complainants said in a joint statement that while the judge denied their request, he also recognised that the case raises "serious questions" about Meta's conduct.

"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 were quoted as saying in the joint statement by Reuters.

What are the allegations against Meta?

The lawsuit was filed by 26 current and former Meta employees earlier this week and alleged that the tech giant relied on AI tools to measure productivity and AI token usage while disadvantaging people who had missed work owing to medical conditions or to care for their family members.

The company also allegedly relied on performance reviews that were based in part on employees' adoption of AI.

The employees claim that Meta used a number of AI-assisted systems to score and rank employees during its latest round of layoffs. These reportedly included an AI model assistant known as 'Metamate', which allegedly worked as an employee-trained "second brain" and tracked workers' communications and documents, along with a productivity score that was generated by scanning keystrokes, screen activity, emails and browser history.

They also allege that Meta did not pause these AI systems even when employees were on vacation or legally protected leave. These scores were allegedly then used as inputs for layoff selection.

Notably, Meta announced the layoffs in May as part of its broader efforts to increase investment in artificial intelligence. The layoffs affected nearly 8,000 employees, or around 10% of Meta's global workforce.

What did the judge say?

The employees had asked Orrick for a temporary restraining order that would block Meta from completing its layoffs while they pursued their claims in private arbitration. However, while their motion for a preliminary injunction is still pending, the judge on Friday suggested that he could change his mind after he has more information about the layoffs.

The lawyers for the plaintiffs argued that the workers could lose valuable stock options and their health insurance along with their jobs and salaries.

Barbara Cowan, one of the lawyers for the plaintiffs, told the judge, according to Reuters, "There's no do-over for bonding with a new baby or giving birth or having active medical treatment."

About the Author

Aman Gupta

Aman Gupta is a Digital Content Producer at LiveMint with over 3.5 years of experience covering the technology landscape. He specializes in artificial intelligence and consumer technology, reporting on everything from the ethical debates around AI models to shifts in the smartphone market.
His reporting is grounded in first-hand testing, independent analysis, and a focus on how technology impacts everyday users. He holds a PG Diploma in Radio and Television Journalism from the Indian Institute of Mass Communication, Delhi (Class of 2022).
Outside the newsroom, he spends his time reading biographies, hunting for the perfect coffee beans, or planning his next trip.

You can find Aman on LinkedIn and on X at @nobugsfound, or reach him via email at aman.gupta@htdigital.in.

Source: Livemint — Companies

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