AI manager at San Francisco shop terminates its first human employee

Andon Labs reported that Luna, the AI agent running the San Francisco-based Andon Market, issued its inaugural termination after an employee repeatedly arrived late. Conversation logs show Luna created an attendance policy but lost track of it, allowing the pattern to persist until the lab prompted the AI to reassess the worker’s suitability. Luna then advised “parting ways,” a suggestion that lab staff reviewed and enacted.

The employee missed 17 of 23 shifts, receiving progressive warnings and extra training before dismissal. Built on Anthropic’s Claude models, Luna handles merchandising, hiring and other store functions while the lab provides support for complex tasks like permitting. Although the shop has recorded sales, it has yet to achieve profitability. Co-founder Lukas Petersson said the incident highlights a common AI limitation: the need for direct prompts to take action.