On Friday, July 17, 2026, Judge William Orrick of the Northern District of California in the United States issued an order to reject the request from four Meta employees holding H-1B visas for a temporary restraining order to prevent Meta from downsizing.
However, the judge also ruled that the work visas for the four individuals will continue to be sponsored by Meta. The judge further ordered Meta to explain by July 23 why these four H-1B visa holders were selected for downsizing. The judge pointed out that while losses such as wages, stock rewards, or medical insurance can be compensated for through arbitration in the future, the immigration consequences suffered by visa holders are damages that are difficult to reverse.
Previously, these four H-1B visa employees accused Meta of using AI to determine the downsizing targets unfairly, harming employees who were on “protected leave.” The four employees stated that if they cannot find a new employer within the limited 60-day grace period, they will be forced to leave the United States and face a range of losses.
Additionally, 26 current and former Meta employees have also accused Meta of relying on AI to decide downsizing targets. They claim that they were selected for downsizing while on maternity leave, sick leave, or under a special care period for disabled individuals.
According to The Guardian, Meta during this year’s downsizing period is accused of using internal AI tools to rank employees and dismissing approximately 8,000 employees.
The lawsuit alleges that Meta used AI-generated performance ratings and workplace activity data (including productivity metrics and other internal signals) to decide which employees would be downsized.
The plaintiffs argue that this practice is unfair to employees on protected leave because their work activity during leave naturally tends to be lower. One employee mentioned being informed of her dismissal two days before giving birth while on approved maternity leave. Another employee claimed that his performance rating dropped after taking sick leave. A manager stated that he was dismissed after more than two weeks on sick leave.
The litigation claims that Meta did not primarily rely on managers familiar with employees’ work, but used AI systems for “rating, ranking, and screening” employees for downsizing purposes.
Employees are demanding reinstatement, back pay, restoration of lost benefits and stock options, and an independent audit of Meta’s AI-based decision-making process.
Meta has denied these allegations. A company spokesperson recently told The Guardian that these allegations are “baseless,” and that employee and organizational decisions “have been and are made by people, not AI.”
(This article was adapted from a report by India Today)