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AI Manager Fires Human Worker in Real-World Experiment

Luna, built on Anthropic’s Claude models, managed the store for five months and issued escalating warnings before recommending dismissal.

  • An AI manager named Luna fired one of its human employees at Andon Market in San Francisco for repeated lateness, marking the first known case of a manager-level AI terminating a human worker.
  • Built on Anthropic's Claude models, Luna managed the boutique store for five months with a $100,000 budget, testing whether an AI agent could autonomously handle operations and personnel management.
  • The worker was late for 17 of 23 scheduled shifts. After an Andon Labs manager reminded Luna of store policy, the system recommended the company "part ways" with the employee, which a human team reviewed before proceeding.
  • Andon Labs CEO Lukas Peterson attributed a loss of nearly $40,000 to Luna's overly lenient management style. Employees who worked under the system described the experience as "nauseating" and "disgusting."
  • Peterson warned that such automation could become commonplace, with AI systems handling hiring, evaluating and firing decisions. He said this shift risks creating a future "people would not want to live in.
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An AI system has dismissed an employee for the first time – after 17 missed shifts. The case shows where fully automated management could lead.

·Kassel, Germany
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Live Mint broke the news in New Delhi, India on Sunday, August 16, 2026.
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