Close Menu
    Facebook X (Twitter) Instagram
    • Our Story
    • Partner with us
    • Reach Us
    • Career
    Subscribe Newsletter
    HR KathaHR Katha
    • Exclusive
      • Exclusive Features
      • Perspectives
      • Friday Features
      • herSTORY
      • Rising Stars
      • Case-In-Point
      • Point Of View
      • Research
      • HR Pops
      • Dialogue
      • Movement
      • Profile
      • Beyond Work
      • By Invitation
    • News
      • Global HR News
      • Compensation & Benefits
      • Diversity
      • Events
      • Gen Y
      • Hiring & Firing
      • HR & Labour Laws
      • Learning & Development
      • Merger & Acquisition
      • Performance Management & Productivity
      • Talent Management
      • Tools & Technology
      • Work-Life Balance
    • Special
      • HR Forecast 2026
      • Cover Story
      • Editorial
      • HR Forecast 2024
      • HR Forecast 2023
      • HR Forecast 2022
      • HR Forecast 2021
      • HR Forecast 2020
      • HR Forecast 2019
      • New Age Learning
      • Coaching and Training
      • Learn-Engage-Transform
    • Magazine
    • Reports
      • Whitepaper
        • HR Forecast 2024 e-mag
        • Future-proofing Manufacturing Through Digital Transformation
        • Employee Healthcare & Wellness Benefits: A Guide for Indian MSMEs
        • Build a Future Ready Organisation For The Road Ahead
        • Employee Experience Strategy
        • HRKatha 2019 Forecast
        • Decoding and Driving Employee Engagement
        • One Platform, Infinite Possibilities
      • Survey Reports
        • Happiness at Work
        • Upskilling for Jobs of the Future
        • The Labour Code 2020
    • Conferences
      • Leadership Summit 2025
      • Rising Star Leadership Awards
      • HRKatha Futurecast
      • Automation.NXT
      • The Great HR Debate
    WhatsApp LinkedIn X (Twitter) Facebook Instagram
    HR KathaHR Katha
    Home»News»AI manager fires first human employee at experimental San Francisco store
    News

    AI manager fires first human employee at experimental San Francisco store

    Andon Labs said AI manager Luna recommended firing an employee after 17 late arrivals across 23 shifts
    HRK News BureauBy HRK News BureauAugust 18, 20262 Mins Read2700 Views
    Share LinkedIn Twitter Facebook WhatsApp
    AI manager
    Share
    LinkedIn Twitter Facebook WhatsApp

    An AI agent managing an experimental retail store in San Francisco has made its first firing decision, dismissing a human employee after repeated attendance issues.

    Andon Labs, which runs the AI-operated Andon Market, said its AI manager Luna recommended ending the employee’s contract after the worker arrived late for 17 of 23 shifts. The employee had received repeated warnings and additional training over several months before the decision was taken.

    The firing was not entirely autonomous. Luna had initially created an attendance policy but later lost track of it, allowing the attendance issues to continue. Andon Labs eventually prompted the AI agent to review its policies and assess whether the employee remained suitable for the role. Luna then recommended parting ways with the employee, with the company reviewing and implementing the decision.

    The experiment began when Andon Labs gave Luna a $100,000 budget, internet access and a corporate credit card, with instructions to open a store and make it profitable. Built using Anthropic’s Claude models, Luna has since selected merchandise, hired contractors, posted vacancies, interviewed candidates and hired employees for the store, which sells books, candles, prints, games and branded merchandise.

    Human oversight remains in place for legal and ethical issues, while employees are formally employed by Andon Labs and receive guaranteed pay and legal protections. The store has generated sales but is not yet profitable.

    The experiment also highlighted a limitation of current AI agents: their tendency to wait for explicit instructions rather than independently identify and act on workplace issues.

    AI AI manager Culture diversity Employee Employee Benefits Employee Engagement Employee termination employees employer Employment Engagement HR Human Resources Productivity Recruitment Skill Development Training Workforce Workplace
    Share. LinkedIn Twitter Facebook WhatsApp
    HRK News Bureau

    Leave A Reply Cancel Reply

    Related Posts

    Casagrand shifts to 8 AM–4 PM workday for staff wellbeing

    September 9, 2026

    White-collar hiring climbs 14% in August as auto, healthcare and retail power jobs revival

    September 9, 2026

    Laid-off employee denied WFH during notice period, sparks debate online

    September 9, 2026

    AllianceBernstein appoints Akanksha Sane as senior vice president, people

    September 9, 2026
    zoha
    Editorial

    AI-native workers are forcing managers to earn their relevance

    They did not arrive announcing themselves. They joined as analysts, engineers, content writers, recruiters and…

    Employees are redesigning work before their companies do

    Nobody announced that work would change this way. There was no strategy document, pilot programme…

    EDITOR'S PICKS

    AI now shapes hiring at 85% of Indian firms. Only 35% report new early-career roles or skill needs

    September 9, 2026

    HR Perspectives by Sriharsha Achar: “If every senior vacancy requires an external search, the organisation has a pipeline problem”

    September 9, 2026

    Myntra is trying to make internal careers less dependent on who your manager is

    September 8, 2026

    Delayering: The word that flattened workplaces

    September 8, 2026
    Latest Post

    White-collar hiring climbs 14% in August as auto, healthcare and retail power jobs revival

    News September 9, 2026

    India’s white-collar hiring market ended August on a strong note, registering a 14 per cent…

    Laid-off employee denied WFH during notice period, sparks debate online

    News September 9, 2026

    A laid-off employee’s request to work from home during his notice period has triggered a…

    AllianceBernstein appoints Akanksha Sane as senior vice president, people

    Movement September 9, 2026

    AllianceBernstein (AB) has expanded its leadership team in Pune by appointing Akanksha Sane as senior…

    Cognizant faces US probe over alleged employment visa violations

    News September 9, 2026

    Cognizant has come under scrutiny in the US over alleged violations related to employment-based green…

    Asia's No.1 HR Platform

    Facebook X (Twitter) Instagram LinkedIn WhatsApp Bluesky
    • Our Story
    • Partner with us
    • Career
    • Reach Us
    • Exclusive Features
    • Cover Story
    • Editorial
    • Dive into the Future of Work: Download HRForecast 2024 Now!
    © 2026 HRKatha.com
    • Disclaimer
    • Refunds & Cancellation Policy
    • Terms of Service

    Type above and press Enter to search. Press Esc to cancel.