A federal appeals court has upheld a lower court’s decision dismissing a lawsuit filed by a male-to-female transsexual who claimed his firing was discriminatory.

Jim Stacy, who had a sex change operation in 2005 and now goes by “Janis,” was laid off by Agere Systems in 2008, along with nearly 4,000 colleagues, following a merger with LSI Corporation.

Stacy, who had worked for Agere for ten years as an engineer, sued the company, claiming that he was targeted for elimination on the basis of his sex, disability and gender identity.

But the court rejected his lawsuit, ruling that the company’s explanation for his firing was satisfactory and had nothing to do with his sex change.

According to court documents, when Stacy was hired in 1998, he “had a traditional masculine appearance, wore male clothing, and went by the name ‘Jim.’” But in 2002, he was diagnosed with gender identity disorder, believing he was really a woman trapped in a man’s body. In 2005, he underwent a sex change operation and took hormones to make himself appear more female. All the while, he continued working for Agere.

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