The Observation Engine

Contrary to widespread fear and numerous headlines, a new study from Yale University’s Budget Lab finds that since the release of ChatGPT in November 2022, AI technology has not yet disrupted job numbers or workforce composition in the United States . Key Findings: Stability, Not Disruption No Major Changes in Job Exposure: The study analyzed workforce data over 33 months, grouping workers by their exposure to AI (high, medium, low). If AI were eliminating jobs, the share of high-exposure workers would have gone down, but the data show those shares have barely changed. Labor Force Composition Unchanged: Yale researchers compared recent trends to historical shifts during the computer boom of the 1980s and the internet tech surge of the late 1990s. Unlike those earlier tech revolutions, AI’s impact on America’s labor force so far appears minimal. Young Worker Analysis: Tracking the spread of jobs among recent college graduates (ages 20–24) and comparing them to older cohorts...

  Tata Consultancy Services (TCS), India’s largest IT services provider, has announced plans to lay off approximately 12,000 employees during FY26. This reduction, which constitutes about 2% of its global workforce , will primarily impact middle and senior-level professionals across multiple geographies . Why Is TCS Taking This Step? According to TCS CEO and Managing Director K Krithivasan, the decision follows the company’s ongoing investments in artificial intelligence (AI) deployment and a thorough evaluation of the workforce skills needed for the future. While TCS has worked to provide career growth and internal redeployment opportunities for its associates, “we find that there are roles where redeployment has not been effective,” Krithivasan told Moneycontrol . This highlights both the scale and growing impact of AI-driven transformation in traditional IT roles. Key Details from the Announcement Scale of layoffs: More than 12,000 employees will be affected, representi...

As the tech giant trims 4% of its workforce, questions loom over AI priorities, gaming cuts, and the future of work in Big Tech. Microsoft has laid off 9,000 employees in its latest wave of job cuts, hitting the gaming division hard. Is this strategic restructuring—or a deeper shift in how tech giants operate? In a move that has sent ripples across the tech world, Microsoft has laid off approximately 9,000 employees , or about 4% of its global workforce , in its second major round of job cuts this year. The layoffs span multiple departments, but the gaming division—particularly Xbox, King, and ZeniMax—has been hit hardest . This brings Microsoft’s total job cuts in 2025 to over 15,000 , raising urgent questions: Is this just routine restructuring? Or are we witnessing a deeper transformation in how Big Tech operates? 🎮 Gaming Takes the Biggest Hit Despite Xbox reporting record engagement and a strong game roadmap, Microsoft has shuttered several studios and canceled high-profile proje...