US Judge Allows Meta to Proceed with Layoffs Despite AI Bias Lawsuit

US District Judge William Orrick ruled in Oakland that the employees failed to demonstrate the "irreparable harm" required to secure an emergency injunction against the cuts. The plaintiffs, a group of engineers, researchers, and designers, contend that Meta’s internal systems—including productivity tracking and AI adoption metrics—penalized those who took legally protected leave. According to the lawsuit, the company’s "Metamate" tool and other monitoring software failed to adjust for absences, resulting in skewed performance scores that influenced the termination list.

Meta has denied the allegations, maintaining that human decision-making remained central to the reduction process. While the employees argue that losing their positions results in the irreversible loss of health insurance and critical life milestones, legal counsel for the company countered that such financial damages are recoverable should the workers prevail in private arbitration. This case marks a significant legal milestone as one of the first attempts to challenge the use of AI in corporate downsizing, setting a precedent for how tech firms manage automated personnel evaluations.